The Pointsbet Holdings Ltd (ASX: PBH) share price is moving higher today after the bookmaker announced it has received authorisation and launched in Indiana.
After surging as much as 8.86% shortly after the announcement this morning, Pointsbet shares have pulled back since to be trading 0.25% higher at $3.96 at the time of writing.
With operations in Australia and the United States, PointsBet has developed a scalable cloud-based wagering platform through which it offers clients innovative sports and racing wagering products.
PointsBet has been pursuing an aggressive growth strategy in the US. The company is an early mover in US states where changes in legislation have meant restrictions against online gambling have been relaxed.
Details of the Indiana approval
Shortly after the market opened this morning, PointsBet announced it has launched operations in the State of Indiana after receiving Mobile Sports Wagering Launch Authorisation from the Indiana Gaming Commission. The approval was awarded to PointBet’s wholly-owned subsidiary, PointsBet Indiana.
With this, the company now believes it will be in a good position to effectively compete and raise its market share in Indiana. The timing of the new launch complements the start of the NCAA March Madness basketball tournament, a period in which PointsBet noted is important for acquisition.
The Indiana market represents the company’s third digital sportsbook operation in the United States. It is also the first under PointsBet’s partnership with Penn National Gaming which was announced in August last year.
Indiana offers significant potential to grow market share
In today’s release, PointsBet highlighted that Indiana is the 17th largest US State by population. Additionally, the estimated total sports wagering revenue projected to be generated in Indiana in 2023 is US$317 million.
On top of this, PointBet added that Indiana has an attractive effective tax rate and there are only a limited number of current competitors, positioning the company well to gain market share.
What’s more, PointsBet will use the new launch to leverage the massive US television advertising market to increase its brand awareness.
Commenting on today’s announcement, Johnny Aitken, PointsBet US CEO, said: “The PointsBet team is excited to share that we are now officially live in Indiana – our third state of operation – where we look forward to providing the sports-loving community in the Hoosier State with the fastest, premium sports betting product they deserve.”
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Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. 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.