Here's why the PointsBet (ASX:PBH) share price stormed 5% higher today

PointsBet was a strong performer today despite weakness in the tech sector…

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 January 20, 2022 5:06 pm AEDT

The PointsBet Holdings Ltd (ASX: PBH) share price was a strong performer on Thursday.

The sports betting company's shares rose 5% to $6.38 despite the rest of the tech sector taking another tumble.

A group of friends watch the game at the pub whilst enjoying a few drinks, one girl has her hand up cheering. — Image source: Getty Images

Why did the PointsBet share price race higher?

Investors were bidding the PointsBet share price higher on Thursday amid reports that the company has been awarded a new licence in the United States.

These reports were confirmed by the company after the market close, with PointsBet announcing that it has been awarded sports wagering and interactive gaming operator licenses by the Pennsylvania Gaming Control Board.

This will allow the company to offer online sports betting and online casino products in Pennsylvania through its partnership agreement with Penn National Gaming Inc. (NASDAQ: PENN). Given that Pennsylvania is one of the top five sports betting states in the United States, this is a big win for PointsBet.

PointsBet USA's CEO, Johnny Aitken, commented: "We are excited to be inching closer to officially offering PointsBet's market-leading products to sports fans and bettors in Pennsylvania in partnership with Penn National Gaming."

"With Pennsylvania ranking among the top five sports betting states in the nation, PointsBet is thrilled to be able to soon establish its presence in this lucrative market, and we are appreciative of the support we've received from the state of Pennsylvania and the great people at the Gaming Control Board. We ultimately seek to provide customers in Pennsylvania with the best-in-class sports betting and online casino experience," he added.

Once again, the company intends to leverage its partnership with NBC Sports to grow its operations in the state. This includes through exclusive multi-platform game day integrations across NBC Sports Philadelphia, regional broadcast home to the Phillies, 76ers, and Flyers.

PointsBet USA's Chief Marketing Officer, Kyle Christensen, said: "With NBC Philadelphia being a key asset in the NBC Sports portfolio, it will play a vital role in our ability to reach new customers and build brand recognition in this new market. We are excited to continue telling the PointsBet story and demonstrate to sports fans and bettors in Pennsylvania exactly what sets the brand apart among the rest."

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