The PointsBet Holdings Ltd (ASX: PBH) share price is having a solid day despite the market weakness.
In morning trade, the sports betting company's shares are up 3% to $2.10.
This compares favourably to a 0.3% decline by the All Ordinaries index.
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Why is the PointsBet share price outperforming?
The catalyst for the rise in the PointsBet share price on Thursday has been the release of an announcement.
According to the release, the company's Premier Turf Club business has entered into an agreement with 1/ST Technology to deliver a fully integrated, white-label advance-deposit wagering (ADW) horse racing betting experience to PointsBet customers across the United States.
1/ST Technology is a business division of The Stronach Group (TSG), which is North America's dominant thoroughbred horse racing company.
Under the partnership, 1/ST Technology will provide market leading horse racing betting products and content solutions that will be fully integrated within the PointsBet sportsbook app. The partnership will also deliver a PointsBet branded stand-alone ADW offering in eligible states outside those in which the company currently offers sports betting.
The release notes that the company will own and operate the ADW business, with the ownership of customer data remaining with PointsBet.
Management expects the PointsBet branded ADW solution to launch in early 2023, delivering PointsBet an online betting presence in over 30 US states. This includes in jurisdictions in which it does not currently offer sports betting.
'A pivotal moment'
PointsBet's CEO, Sam Swanell, was very pleased with the news and sees it as a pivotal moment for the company's US expansion. He said:
Today marks a pivotal moment in the evolution of our US expansion strategy. Horse racing has a unique role to play alongside sports betting in the United States, and despite already generating over US$6.5 billion per annum in industry online handle, we consider it an attractive category on the cusp of further expansion on the back of the ongoing shift from brick and mortar to digital.
With PointsBet's mature market Australian racing expertise, and now a strategic partner in 1/ST TECHNOLOGY that provides us with a market leading portfolio of racing products and services, we can introduce new and existing customers to a dynamic and interactive PointsBet branded horse betting experience. This will be supported through cost effective offers and marketing, along with the utilisation of our extensive US sports betting database.
