The Pointsbet Holdings Ltd (ASX: PBH) share price has rocketed 17% to $3.40 this morning after the innovative sports betting company announced its wholly owned subsidiary PointsBet USA has signed an agreement with Penn National Gaming Inc. (NASDAQ: PENN) to operate Pointsbets’ products under Penn’s gaming licenses in Ohio, Indiana, Missouri, West Virginia and Louisiana.
Commenting on the partnership, PointsBet Chief Executive Officer, Sam Swanell said:“Partnering with Penn provides PointsBet access to five important States and the potential for further State deals. We are delighted to partner with such a forward thinking and innovative organisation.”
Mr Swannel also emphasised how the deal demonstrates the strength of PointsBet’s proprietary technology which some investors suggest means the tech start-up may have a moat or competitive advantage that helps it grow into the future.
According to the announcement the partnership has the “potential to expand PointsBet’s United States footprint to 10 States (subject to the passing of enabling legislation and licensure). PointsBet has current agreements in New Jersey, Iowa, Illinois, Colorado and a second skin agreement in New York.”
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The Motley Fool Australia has recommended Pointsbet Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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