Why has the Pointsbet share price dumped 9% in 2 days?

It's another tough day for the betting company amid an investigation into the industry.

Key points
  • The Pointsbet share price is tumbling again today, bringing its falls for the last two days to 8.6%
  • Meanwhile, AUSTRAC announced it's cracking down on the bookmaking sector yesterday as it investigates two industry giants
  • The regulator has launched probes into Sportsbet's and Bet365’s compliance with anti-money laundering and counter terrorism financing laws

The Pointsbet Holdings Ltd (ASX: PBH) share price is once again in the red, falling another 2.4% on Friday. That brings its fall for the last two days to a whopping 8.6% despite no news having been released by the company in that time.

However, AUSTRAC has put the corporate bookmaking sector on notice as it launched an investigation into industry giants.

That same day, the Pointsbet share price plunged 6.4%. Today, it's back in the red.

The Pointsbet share price is currently down 2.4%, trading at $2.01.

For comparison, the All Ordinaries Index (ASX: XAO) is lifting 0.3% right now.

Let's take a closer look at the warning the watchdog has issued the industry.

Four football fans put heads in hands and look disappointed while watching television.

Image source: Getty Images

Could this be weighing on the ASX bookmaker share?

The Pointsbet share price has tumbled over the last two sessions alongside some of its ASX-listed peers.

The share price of gambling and entertainment services provider Tabcorp Holdings Limited (ASX: TAH) slipped 1% yesterday, and is down 2.4% right now. And while that of Bluebet Holdings Ltd (ASX: BBT) went nowhere yesterday, it's falling 6.8% today.

The gaming stocks' falls come amid news AUSTRAC is intent on cracking down on suspected breaches of anti-money laundering and counter-terrorism financing among their peers.

AUSTRAC CEO Nicole Rose commented on the regulator's latest probe, saying:

Sportsbet and Bet365 are amongst the largest operators in the corporate bookmaking sector. AUSTRAC is putting the whole industry on notice to lift their game.

AUSTRAC has appointed an external auditor to assess Sportbet's and Bet365's compliance with anti-money laundering and counter-terrorism financing legislation.

The watchdog will decide the extent of the probe and the bookmakers will pick up the bill. The outcome will form the regulator on whether action is required.

It comes just months after the watchdog commenced an enforcement investigation into Ladbrokes operator Entain Group following "an extensive supervisory campaign that assessed entities within the corporate bookmakers sector".

Pointsbet, nor any other ASX-listed entity, were named in either of AUSTRAC's releases. Though, it's yesterday's news that likely put focus on some of the stocks.

Pointsbet share price snapshot

This week's falls are just the latest faced by the Pointsbet share price this year.

The stock has tumbled 70% since the start of 2022. It has also dumped 75% since this time last year.

Comparatively, the All Ordinaries Index has fallen 11% year to date and 9% over the last 12 months.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended BlueBet Holdings Ltd and Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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