The Pointsbet Holdings Ltd (ASX: PBH) share price has finally made some headway. At the time of writing, PointsBet shares are trading hands for $12.98 per share, putting them up almost 10% this year and teasing their previous record closing price of $13.28 on 2 September 2020.
Much of these year-to-date gains occurred yesterday, after Pointsbet announced it had entered into a multi-year partnership to be the official gaming partner of the Detroit Red Wings (hockey) and Little Caesars Arena. The strategic deal includes a brand new Pointsbet sports bar coming to Little Caesars and signage during Detroit Red Wings’ games this upcoming season.
Pointsbet share price finally going somewhere
Before yesterday’s announcement, the Pointsbet share price has seemingly gone nowhere since its game-changing deal with NBCUniversal was announced last August. The deal almost doubled the Pointsbet share price in a single day from $7 to $13.
The partnership will push the Pointsbet brand and products in front of the largest sports audience of any US media with exclusive television and digital sports betting integrations.
From a cost perspective, Pointsbet has committed a total marketing spend of US$393 million in progressively increasing amounts over the 5-year media partnership, together with incentives payable to NBC for customer referrals. NBC will also take a 4.9% ownership stake in the Pointsbet company.
Competing US bookmakers reporting strong results
Elsewhere, William Hill plc reported significant growth in the US in its trading statement for the unaudited 52 weeks ended 29 December 2020. William Hill US went live in five states and launched mobile in five states, leading to 121% net revenue growth in the fourth quarter. Its sports betting apps and sports book odds are also featured in both ESPN and CBS Sports, two of America’s leading sports media brands.
Pointsbet’s major US competitor, DraftKings Inc (NASDAQ: DKNG) has also rallied strongly in 2021, with year-to-date returns sitting at 17%.