The PointsBet Holdings Ltd (ASX: PBH) share price is in the red this morning. That's after the betting company announced a new partnership with Major League Soccer (MLS) team Austin FC.
In early trade, shares in the company were up 1.25% to $9.72. However, at the time of writing, they are down to $9.44 — that's a fall of 1.67% on yesterday's closing price. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.9% higher.
Let's take a closer look at today's news.
PointsBet share price is taking a dive
In a statement to the ASX, PointsBet says it has entered into an "exclusive" agreement with Texas MLS team Austin FC (AFC) to appoint PointsBet as the team's sportsbook partner.
PointsBet has also made a deal with the AFC stadium (an affiliate of AFC) to become the venue's exclusive partner for betting across the state of Texas.
It should be noted both of these deals are contingent on the state of Texas amending existing sports betting laws. If legislation is not amended, these contracts will become null and void.
Texas is just one of several markets in the US in which PointsBet is hoping to make inroads. For example, the PointsBet share price shot up on news it would be allowed to operate in the state of West Virginia.
Texas has a population larger than Australia, while Austin, its capital, is one of the fastest-growing cities in the US, according to the statement. However, the deal has done little to boost the PointsBet share price.
Management commentary
PointsBet USA CEO Johnny Aitken said:
In owning and operating our technology from end to end, PointsBet can innovate our product and personalise our offerings according to fan interest and needs – and we hope to be able to unveil our offering to Austin FC supporters in the near future when legislation permits.
In the meantime, we look forward to the opening of the PointsBet SportsBar at the grounds of Austin FC and watching soccer in the amazing new MLS stadium.
PointsBet share price snapshot
Over the past 12 months, the PointsBet share price has plummeted 17%. Year-to-date the company's shares are down by a similar amount.
PointsBet Holdings has a market capitalisation of about $2.5 billion.
