Home / Sector / Consumer Staples & Discretionary Shares / The PointsBet (ASX:PBH) share price is down 7% on Monday

The PointsBet (ASX:PBH) share price is down 7% on Monday

The PointsBet share price is falling today. Here's what we know about the slump.

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Brooke Cooper
Brooke has been a Motley Fool contributor since early 2021. She holds a Bachelor of Communication with specialisations in journalism and international studies from Charles Sturt University. Brooke aims to inform and excite Aussies keen to grow their wealth by investing in ASX companies. When not writing or researching, you'll likely find Brooke gallivanting around South East Queensland.
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The PointsBet Holdings Ltd (ASX: PBH) share price has given back Friday's gains and then some, despite no news released by the company today.

On Friday, PointsBet announced it had received regulatory approval to launch its online sports betting operations in the US state of West Virginia.

The PointsBet share price gained 2.34% on the day the news was released. However, it has slumped 6.78% today.

Right now, the Pointsbet share price is trading at $10.59.

The fall comes amid what appears to be a sell-off of the online bookmaker's stock. At the time of writing, more than 1.4 million PointsBet shares have been traded today. For comparison, the daily average over the past 4 weeks is around 1.9 million PointsBet shares swapping hands.

Let's take a closer look at the latest news from PointsBet.

sad party goer sitting alone after celebration

Image source: Getty Images

PointsBet launched in another US state

The PointsBet share price gained on Friday after it announced its wholly-owned subsidiary, PointsBet West Virginia, received the West Virginia Lottery Commission's approval to begin offering online sports betting in the state.

Despite today's share price slip, the new approval is expected to bring good things for PointsBet.

West Virginia is the seventh US state in which the company has launched its online sports betting. It already has operations in New Jersey, Iowa, Indiana, Illinois, Colorado, and Michigan.

Additionally, PointsBet plans to launch its proprietary online casino product in West Virginia before the end of the year.

Management commentary

PointsBet USA CEO Johnny Aitken commented on the news on Friday, saying:

Launching in West Virginia represents further progress for PointsBet and presents another tremendous opportunity we are excited to attack…

We are thrilled to now introduce West Virginian sports bettors to the competitive advantages PointsBet possesses in owning our technology end-to-end, such as our speed and ease of use as well as a deep slate of betting options for every NFL, NBA, MLB, NHL, WNBA, and PGA TOUR contest.

PointBet also announced at the time it had appointed Aonghus Mulvihill as vice president of Global Sportsbook Trading.

PointsBet share price snapshot

Today's fall places PointsBet firmly back in the red on the ASX.

Right now, the PointsBet share price is 9% lower than it was at the start of 2021. However, it has gained 66% since this time last year.

Motley Fool contributor Brooke Cooper 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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