The· PointsBet Holdings Ltd [ASX:PBH] Stock prices have risen slightly today after expanding market access in Pennsylvania and Mississippi.
PointsBet Holdings Ltd [ASX:PBH] Stocks rose 4% in early trading, before they rose slightly at 0.3% at the time of writing (2:00 pm).
PBH’s share price has fallen 14% since last month, but YTD has risen 13%.
Over the last 12 months, PointsBet’s share price has risen 780%.
PointsBet Extends Market Access Contract
The company today announced that its subsidiaries PointsBet USA and Penn National Gaming can extend their online gaming services framework agreement to provide PointsBet with online sports betting and iGaming market access in Pennsylvania and Mississippi, USA.
Nevertheless, the extended agreement is contingent on allowing legislation in Mississippi and licensing in both Mississippi and Pennsylvania.
This agreement means that PointsBet currently has a sports betting presence in 14 states in the United States.
PointsBet will pay Penn National Gaming a portion of the net gaming revenue from each of the additional states.
In addition, the company is solely responsible for all license and approval costs associated with the operation of the sports betting service.
Each state’s market access agreement is 20 years from the date the PointsBet branded service was first offered to PointsBet players.
Jay Snowden, President and Chief Executive Officer of Penn National Gaming, commented:
‘With the addition of Pennsylvania and Mississippi, we are pleased to extend our market access partnership with PointsBet to seven states.
‘We have a great partnership with the PointsBet team and have been thrilled with the performance of the company’s stock since we signed the initial contract.‘
PBH stock price outlook
So I picked it up last week, Pointsbet acquired Banach Technology on a cash and debt-free basis for US $ 43 million.
Banach offers a unique risk management platform and trading model to support pre- and in-play betting on four major American sports and international football.
Recent acquisitions and today’s extended market access agreements highlight PointsBet’s strategy to target the huge US betting market.
Investors will appreciate this aggressiveness of the company to expand its foothold in large markets like the United States.
As discussed in the acquisition release, PointsBet wants to be a “”.Leader of sports betting while playing in the United States, as betting during play is expected to grow exponentially.. “
In today’s release, PointsBet CEO Sam Swanell states that Pennsylvania has a combined addressable sports betting and iGaming market estimated at US $ 1.75 billion annually.
Further gains in PBH’s share will depend heavily on how well corporate acquisitions and access contracts are transformed into the acquisition of these large addressable markets.
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PointsBet share price rise after securing Sports Beting Access (ASX: PBH)
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