The Pointsbet Holdings Ltd (ASX: PBH) share price is falling this morning after the company released unfortunate news of its planned debut in Arizona’s sports betting market.
The company’s previous plan to break into the state’s newly legalised sports betting market has hit some turbulance.
Right now, the Pointsbet share price is $10.13, 2.22% lower than its previous close.
Let’s take a closer look at the disappointing news out of the bookmaker today.
The Pointsbet share price is slipping after the company’s plans to break into Arizona’s sports betting market hit a wall.
Today, Pointsbet announced Cliff Castle Casino Hotel, a subordinate economic organisation of the Yavapai-Apache Nation, was denied a sports betting license from the Arizona Department of Gaming. The Yavapai-Apache Nation is made up of 5 tribal communities and is located in the state’s Verde Valley.
Pointsbet and Cliff Castle Casino Hotel has previously agreed to partner to open a sports betting business in Arizona. The Pointsbet share price gained 1.4% on the back of the plan, which was announced to the market last month.
According to Pointsbet, the department didn’t provide a reason as to why Cliff Castle Casino Hotel was refused a license.
Pointsbet didn’t state if the two bodies will continue working to secure a sports betting licence following the rejection.
Under the previously announced 10-year arrangement, Pointsbet was to pay the Yavapai-Apache Nation a market access fee and a portion of its gaming revenues from online sportsbook operations.
Pointsbet also planned to cover the licencing and regulatory costs of launching and operating its betting services.
Additionally, Pointsbet was to pay to create a Pointsbet branded retail sportsbook at the Cliff Castle Casino Hotel.
Online sports betting was legalised in Arizona earlier this year. According to Pointsbet, 10 online sports betting licences have been reserved for tribal communities in the state.
The Pointsbet share price has been struggling lately.
It has slipped 11% since the start of 2021. It’s also currently 12% lower than it was this time last year.
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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.