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

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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.

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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Aaron Teboneras 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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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