Here’s why the PointsBet (ASX:PBH) share price is on the rise

The company’s shares are receiving a much welcomed boost today.

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The PointsBet Holdings Ltd (ASX: PBH) share price is pushing higher on Friday. This comes after the sports betting company announced two positive updates to the ASX this morning.

At the time of writing, PointsBet shares are up 1.99% to $12.33.

PointsBet launches iGaming

Investors appear pleased with the company’s latest news, bumping up PointsBet shares.

In its release, PointsBet advised that its wholly-owned subsidiary PointsBet New Jersey LLC has been given the approval to commence iGaming operations. The green light came from the New Jersey Department of Gaming Enforcement (NJDGE).

Without hesitation, the company has immediately launched its proprietary iGaming platform in the state.

This follows the inaugural launch of iGaming operations in the state of Michigan on 5 May 2021.

PointsBet noted that iGaming revenues across the United States have grown significantly over the last 3 years. This is due to the successful repeal of the Professional and Amateur Sports Protection Act in May 2018.

Across New Jersey, Pennsylvania, Michigan, and West Virginia, iGaming revenue has almost reached US$900 million in the 2021 June quarter. When looking at an annualised amount, this equates to more than US$3.5 billion per year.

PointsBet Group CEO and managing director, Sam Swanell commented:

We are thrilled to be able to expand our iGaming presence in the United States and bring our proprietary online casino product to the robust New Jersey market. The continued growth of our iGaming presence further advances our ability to acquire and retain premium clients, complementing our existing sports wagering products.

CEO PointsBet Canada appointment

In further news, PointsBet announced that it has appointed Scott Vanderwel as its CEO for PointsBet Canada.

Mr Vanderwel previously served as senior vice president for the Canadian communications and media company, Rogers Communications. His role oversaw corporate strategy, operational improvement, and digital operations.

Prior to this, Mr Vanderwel led the Canadian practice for Monitor Group, a global business strategy consultancy, later acquired by Deloitte.

Mr Vanderwel will assume the PointsBet Canada position effective on 17 August 2021.

PointsBet Group CEO and managing director, Sam Swanell went on to further add:

We’re thrilled that Scott has agreed to serve as the first CEO of PointsBet Canada and help us build a team and a business strategy that can serve the new Canadian market with the same sort of creativity and customer-focus that our clients in the U.S. and around the world have come to expect from PointsBet.

PointsBet share price snapshot

Since reporting its half-year results in February, PointsBet shares have travelled sideways. The company’s share price is sitting in the middle of its 52-week range of $5.16 to $18.13. In 2021, PointsBet shares are up marginally, 5%.

PointsBet commands a market capitalisation of roughly $2.5 billion, with almost 208 million shares on issue.

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Motley Fool contributor 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 and has recommended 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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