Game on: Why the PointsBet (ASX:PBH) share price is zipping higher today

What’s driving PointsBet shares higher?

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Key points

  • PointsBet shares gain 3.03% to $3.74 
  • The company announced it has launched iGaming and sportsbook operations in Ontario, Canada 
  • Famous sports teams that can be bet on include Toronto Maple Leafs, Toronto Raptors and the Toronto Blue Jays 

The PointsBet Holdings Ltd (ASX: PBH) share price looks set to finish in positive territory at the close of Monday’s trade. This comes after the company announced an update in regards to its wholly-owned subsidiary, PointsBet Canada Operations 1 Inc (PointsBet).

As the time of writing, the sports betting company’s shares are up 3.03% to $3.74.

PointsBet gets in on the Ontario action

Investors appear pleased with the company’s latest news, bumping up PointsBet shares.

In its release, PointsBet advised that it has launched its proprietary iGaming and sportsbook operations in Ontario, Canada.

Furthermore, the company has also taken its first bet, bringing its online casino product to the state.

Located in east-central Canada, Ontario is the country’s most populous province and second largest geographically. It is home to Ottawa, Canada’s capital, with over 14.8 million people and a host of professional sports teams. This includes the famous Toronto Maple Leafs (NHL), Toronto Raptors (NBA) and Toronto Blue Jays (MLB).

PointsBet Canada CEO, Scott Vanderwel touched on the milestone achievement, saying:

Today is a great day for Ontario sports fans! On behalf of the entire PointsBet Canada team, I’d like to share how thrilled we are to see the province’s sports wagering market officially open. Just moments after 12:00am local time this morning, PointsBet Canada became one of the first private sportsbooks to take a legal wager.

Over the past few months, our team has been scaling and focused on building partnerships with the athletes, teams, and organizations that matter to Canadians. We know our customers will appreciate our unmatched in-play betting, great odds, depth of offering, and local Canadian support teams ready to assist when they need it. We will offer an unrivalled experience to sports bettors and gaming enthusiasts.

PointsBet share price snapshot

Despite edging higher on Monday, the PointsBet share price has tumbled by 70% over the last 12 months.

These losses have mostly come in 2022 following investor concerns about the company’s valuation and high marketing costs. Year to date, PointsBet shares are down 47%.

Based on today’s price, the company commands a market capitalisation of roughly $982.43 million.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. 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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