The PointsBet Holdings Ltd (ASX: PBH) share price is moving higher today following an announcement the company has secured online iGaming market access in New Jersey. At the time of writing, the PointsBet share price is up 0.34% up to $6.13. The share price rose to an intraday high of $6.31 before being sold off.
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What is the new opportunity?
PointsBet announced that it has entered into a 'primary skin' agreement with Twin River Worldwide Holdings Inc (NYSE: TRWH). The details of the agreement are that PointsBet is to provide iGaming/online casino services in the State of New Jersey. However it is worth noting that the opportunity is contingent upon Twin River completing its acquisition and PointsBet obtaining the necessary regulatory licenses and approvals.
Some of the key features of the agreement include:
- The term of the agreement is 10 years.
- PointsBet will pay Twin River a portion of the net gaming revenues derived from its New Jersey iGaming/online casino operations.
- The agreement involves PointsBet and Twin River partnering to launch iGaming/online casino via PointsBet's mobile app and website platforms pending final regulatory licenses and approvals.
CEO of Twin River, George Papanier, spoke of his enthusiasm regarding "adding an exciting iGaming experience with such a prominent partner." Papanier also proclaimed that he was "extremely excited to have the opportunity to participate in the best-in-class mobile gaming environment that New Jersey has created and that we believe will bring new and innovative offerings to the market."
What now for the PointsBet share price?
The PointsBet share price has been on a solid run recently with the company releasing news of multiple deals from the United States trickling through. Just yesterday, the PointsBet share price rose on news the company had partnered with the Indiana Pacers team.
The development of PointsBet's proprietary iGaming platform is also progressing well. The company is currently in advanced discussions with various market leading iGaming product/game providers for its use. PointsBet will launch iGaming in Michigan first, with the launch in New Jersey expected to follow in the first half of FY2021. Shareholders will be hoping that these launches continue driving up the company's share price. The PointsBet share price is up 419% since its lows in March this year.
However it is worth noting that PoinstBet is one of the most shorted shares on the ASX, with many brokers believing it has overshot on the upside. This may be a result of the company's Q4 earnings that disappointed the market and saw the PointsBet share price tumble.
