Here’s why the PointsBet (ASX:PBH) share price will be on watch today

Here's why the PointsBet (ASX:PBH) share price will be on watch today

Shares in PointsBet Holdings Ltd (ASX: PBH) will be on close watch today. This comes after the company announced it has obtained approval to operate within the state of Michigan (United States).

Aaron Teboneras

Author bio Aaron Teboneras is an ASX investment writer with a background in business, marketing and finance. He has been a contributor to The Motley Fool since 2020, covering market news, company announcements, broker views and financial results. Aaron’s previous notable appointments include National Australia Bank, and Computershare where he discovered his passion for the Australian sharemarket. Aaron has been investing for almost 20 years, using both fundamental and technical analysis to find opportunities. Aaron completed a Technical Analysis course with Mint Analysis in 2022 and is currently studying Training and Assessment. Outside the market, he has travelled to more than 45 countries and enjoys trekking, meeting new people and seeing different parts of the world. Areas of expertise ASX growth shares Founder-led companies Company announcements and financial results Fundamental and technical analysis Education Bachelor of Business from RMIT University Social media LinkedIn Instagram Favorite investment quote “If you don't find a way to make money while you sleep, you will work until you die.” — Warren Buffett

Published January 21, 2021 10:04 am AEDT

The PointsBet Holdings Ltd (ASX: PBH) share price will be on close watch today. This comes after the company announced it has obtained approval to operate within the state of Michigan (United States).

At yesterday's market wrap, the sports betting company's share price finished the day at $14.71.

3 men at bar betting on sports online 16.9 — Image Source: Getty Images

What did PointsBet announce?

According to this morning's release, the Michigan Gaming Control Board (MGCB) has granted approval for PointsBet subsidiary, PointsBet Michigan LLC, to begin online sports betting operations effective tomorrow.

The favourable outcome now places PointsBet in offering its online betting platform across 6 states within the United States. These include New Jersey, Iowa, Indiana, Illinois, and Colorado.

The company highlighted its recent partnerships with several teams across the country's most popular sports. It drew attention to a deal made with NBA's Detroit Pistons allowing full usage of marketing and sponsorship opportunities. In addition, the sports betting company included former NBA Champion Rip Hamilton to serve as a brand ambassador.

PointsBet went on to mention that it also has diversified its commitments to other national team sports. Just this month, it signed on a multi-year deal with NHL Detroit Red Wings. The official partnership gives PointsBet access to marketing material and exclusive offers, as well as featuring a PointsBet Sports Bar in the club's home stadium.

PointsBet also became the official gaming partner for Detroit Tigers of the MLB. Again, the multi-year agreement gives the sportsbook operator to provide access to unique experiences, content, and promotions at Comerica Park, Michigan.

What did the CEO say?

Mr. Sam Swanell, PointsBet Group CEO, welcomed the positive news, saying:

PointsBet is pleased to have been approved to launch in Michigan in the first wave of operators. We look forward to providing this sports-loving state with a fast, premium sports betting product.

About the PointsBet share price

The PointsBet share price has gone from strength to strength since falling to an all time low of $1.10 in March. At the current price, its shares have gained over 1200% in less than 9 months.

It's worth nothing that the PointsBet share price is nearing its all-time high of $15.25 reached in late August.

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