Why the PointsBet (ASX:PBH) share price is rocketing 9% today

PointsBet is expanding its operations as the global online casino market continues to grow.

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A group of people cheer at a blackjack table in a casino

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Key points

  • The online gambling market continues to grow
  • West Virginia becomes the third US state to host PointsBet’s online casino operations
  • The PointsBet share price is leaping higher

The PointsBet Holdings Ltd (ASX: PBH) share price is rocketing in morning trade, up 8.65% to $5.66 per share.

Below we look at the ASX-listed company’s latest expansion into the United States gambling market.

What expansion plans were announced?

The PointsBet share price is surging after the company announced the launch of online casino operations in a third US state.

The launch is in West Virginia via the bookmaker’s wholly-owned subsidiary, PointsBet West Virginia LLC.

This follows the release of PointsBet’s mobile app and digital sports betting product in West Virginia in August 2021.

PointsBet already offers its iGaming platform in 2 other US states – Michigan and New Jersey. PointsBet launched the platform in Michigan in May last year, followed by New Jersey in July.

PointsBet’s VP of Online Casino Revenue, Aaron O’Sullivan, said:

As PointsBet rapidly expands its presence across the US and the online casino market continues to surge in popularity, we are thrilled to be able to now offer an online casino experience to users in West Virginia. It has been our goal to deliver the best-in-class casino content to our users in all of the states where we are permitted to offer the service.

PointsBet’s President of Product and Technology, Manjit Gombra Singh, added:

We’re quickly scaling our business and have now integrated Scientific Games’ platform to expand our premium content portfolio. We’re looking forward to expanding and refining our suite of products throughout the year to deliver more options for our users in PointsBet online casinos.

PointsBet credited its entry into the West Virginia market to its relationship with the Hollywood Casino at Charles Town Races.

PointsBet share price snapshot

It’s been a rocky road for the PointsBet share price over the past 12 months. It’s currently down by 64%.

By comparison, the somewhat battered S&P/ASX 200 Index (ASX: XJO) remains up 2.3% over the same period.

So far in 2022, Pointsbet shares are down by 21%.

Should you invest $1,000 in PointsBet right now?

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The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns 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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