PointsBet Share Price Down, Opens in Colorado (ASX:PBH)
The share price of PointsBet Holdings Ltd [ASX:PBH] is down after opening its fifth operation in Colorado.
The announcement saw the PBH share price drop 1.65% to trade at $11.35, at the time of writing.
PointsBet Holdings in expansion mode
The online gambling company is making inroads to the US market.
This year saw the company launch in Illinois along with partnerships of major US sporting teams.
All backed by the five-year deal PointsBet signed with NBC Universal, gaining the rights to become their sports betting partner.
Today, the company is now open for business in Colorado. With the next launch planned for Michigan in Q3 FY21.
Michigan will also see the inaugural launch of PointsBet’s iGaming product.
On the announcement of the Colorado opening, PointsBet US CEO Johnny Aitken mentioned:
‘It is a great feeling to now be able to officially introduce Colorado sports bettors to the competitive advantages PointsBet possesses in owning our technology end-to-end, as well as light up our major investments in the state like our fully exclusive deal with the Kroenke Sports and Entertainment team across the Denver Nuggets, Colorado Avalanche and the Ball Arena in advance of the upcoming NBA and NHL seasons.’
The future for PointsBet
PBH thrived where others failed in lockdown.
All up, their expansion into the US in multiple states with TV deals and team deals in place, isn’t a bad result.
For the share price it’s has certainly been good news.
Keep in mind though, the company listed only in June 2019, roughly 18 months ago.
After making an all-time high in August, the price fell back to where it sits at the time of writing.
This type of retracement is not uncommon after a big breakout.
The PBH share price moved sideways on declining volume over the last 10 weeks.
Breaking out of the sideways movement will give a good indication of the stock’s direction.
If it can break $12.35 the outlook may be bullish, should it decline lower than $9.94, the future may be bearish.
Without being able to attend games, it appears sports betting is the next best thing.
How PBH handles their US rollout will be particularly interesting.
They’ve committed to pouring US$393 million into marketing in a five-year period.
Their cash balance of $436.5 million at 30 September should help in this endeavour.
If you are a bit late to the PBH show then why not check out these four small-caps?
The report is a great way to start thinking about post-lockdown trends in e-commerce and safety technology.
You can download that for free, right here.
For Money Morning