The PointsBet Holdings Ltd (ASX: PBH) share price is having a tough day on Tuesday.
In early afternoon trade, the sports betting company's shares are down 7% to $2.60.
Image source: Getty Images
Why is the PointsBet share price sinking?
There are a couple of potential catalysts for the weakness in the PointsBet share price today.
The first is broad weakness in the tech sector following a poor night on Wall Street's tech-focused Nasdaq index. This saw Nasdaq-listed rival, DraftKings, lose approximately 4% of its value during overnight trade.
This weakness has seen most ASX tech shares tumble today, leading to the S&P ASX All Technology index trading 2% lower at the time of writing.
What else?
Also potentially weighing on the PointsBet share price is news that smaller rival Bluebet Holdings Ltd (ASX: BBT) will be joining the company in the Indiana market.
This morning, BlueBet revealed that it has signed a 10-year market access agreement with Caesars Entertainment to operate a new online sportsbook in Indiana under the ClutchBet B2C brand.
Though, it will have some catching up to do. PointsBet has been operating in the Indiana market since March 2020, so has a big head start.
Though, there certainly is a big enough market for both companies and their US rivals to work with. Indiana is a state of ~6.8 million people and first legalised online sports betting in October 2019.
Business has been booming since then. For example, during the last 12 months, the state generated $4.5 billion in wagering handle.
