Yesterday, the PointsBet Holdings Ltd (ASX: PBH) share price finally hit a new all-time high closing price, finishing the day at $13.28 per share. This follows months of bouncing between the $10 to $13 level.
At the time of writing, the Pointsbet share price is up another 3.90% to $13.80 per share.
While the company has not made any major announcements since its annual general meeting in November 2020, a number of announcements from competing US sports betting companies and fresh US sports betting turnover data has helped set a bullish tone for the PointsBet share price in the new year.
Record turnover for New Jersey sports betting
New Jersey took in a record US$1 billion worth of sports bets in December 2020, the latest in a string of monthly records for US sports betting.
With the NFL playoffs underway in a lead up to the Super Bowl, January 2021 is expected to set new records for the industry.
Not only does New Jersey represent the biggest sports betting state in the US, but also the birthplace of PointsBet US. In FY20, PointsBet's New Jersey FY20 turnover was $307.3 million, which generated a net revenue of $6.8 million. This makes up approximately 30% of the group's FY20 turnover of $1.15 billion. This result represented an online turnover market share in New Jersey of approximately 6.25% in FY20.
Competing bookmakers deliver significant growth
DraftKings and FanDuel are currently the two biggest bookmakers in the US.
DraftKings saw a 98% year-on-year revenue surge to US$132.8 million in the latest quarter, reported on 13 November 2020. In the quarter, it raised its full-year 2020 revenue range to US$540 million to US$560 million, which translates to 25%–30% annual revenue growth.
The company also provided a 2021 revenue guidance of US$750 million to US$850 million, which equates to 45% year-over-year growth using the midpoints.
"The resumption of major sports such as the NBA, MLB and the NHL in the third quarter, as well as the start of the NFL season, generated tremendous customer engagement," said DraftKings CEO Jason Robins.
Foolish takeaway
The US sports betting market is still in its early days with a number of states still working towards legalisation. Morgan Stanley and JP Morgan are bullish on the sector, estimating the US sports betting and iGaming industry to be a US$12 billion opportunity by 2025.
Looking ahead for the PointsBet share price, the company has announced its intentions to launch its sportsbook and iGaming product in Michigan in the third quarter of FY21 and iGaming product in New Jersey in the second half of FY21.
