PointsBet (ASX:PBH) share price on watch after New York update

PointsBet is entering New York…

James Mickleboro

Author Bio James Mickleboro is an investment writer and analyst who has worked with The Motley Fool Australia for 10 years, covering ASX shares, market news, broker research, dividends, growth stocks, and long-term investing ideas. Over that time, James has written extensively about Australian equities and developed a particular focus on helping everyday investors understand the stories behind share price moves, company announcements, broker views, and broader market trends. His best investment recommendation was identifying Afterpay while it was still a small-cap growth share, before its rise into one of Australia’s biggest technology success stories. His worst investment lesson came from CSL Ltd (ASX: CSL), where he was burnt by believing management could turn the business around sooner than the market ultimately allowed. Areas of Expertise ASX shares Growth and dividend investing Broker research Interpreting company announcements Market news Portfolio strategy Long-term wealth creation Education Bachelor of Politics, Philosophy and Economics. CFA Institute Social Media LinkedIn Favorite Investment Quote "It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett

Published November 9, 2021 9:05 am AEDT

The PointsBet Holdings Ltd (ASX: PBH) share price will be on watch today.

This follows the release of a very positive announcement that could put a rocket under its shares.

Two men excited to win online bet — Image source: Getty Images

Why could the PointsBet share price shoot higher?

This morning PointsBet released an announcement relating to a public meeting held on Monday by the New York State Gaming Commission (NYSGC).

This meeting was to decide which sports betting companies would be recommended for a licence to operate mobile sports wagering in New York when laws change.

According to the release, the NYSGC has recommended PointsBet as one of the nine companies to be awarded a Platform Provider licence to operate mobile sports wagering in the state. Other companies being recommended are FanDuel, BallyBet, BetMGM, DraftKings, Rush Street Interactive, Caesars, WynnBet, and Resorts World.

What's next?

Official approval procedures are still to follow, with the recommended operators to undertake independent system testing ahead of official launch. This is expected in early 2022.

PointsBet's US CEO, Johnny Aitken, was pleased with the news, noting that it is an "exciting moment" for the company.

He commented: "Having the potential to secure market access to New York state – expected to be one of the largest and most important markets in the United States – represents another major milestone for our company, our brand, and our technology."

"We are thankful to the Gaming Commission for this recommendation and believe it speaks volumes to PointsBet's reputation and ability to deliver an unrivaled, world-class experience. We eagerly await the official opportunity to leverage our exclusive sports betting partnership with NBC Sports and introduce the nation's premier sports betting product to the countless passionate, sports-loving New Yorkers," he added.

The PointsBet share price is down 28% in 2021, so this news will no doubt be welcomed by shareholders.

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