Pointsbet (ASX: PBH) shares are currently up more than 3% after announcing some news today.
What is Pointsbet?
Pointsbet is a corporate bookmaker based out of Darwin with operations in both Australia and the U.S. PointsBet has developed a scalable cloud-based wagering platform through which it offers its clients innovative sports and race wagering products.
The betting business has announced a multi-year deal to become a gaming partner of the Detroit Tigers MLB team.
Sports betting was legalised in Michigan in 2019. This is the first sports betting partnership for a professional sports team within Michigan and is also the first for any MLB franchise. The deal begins for the upcoming 2020 Tigers season.
Pointsbet will have television broadcast-visible branding at Comerica Park and will also be on Detroit Tigers Radio Network. Pointsbet will also have a sponsored presence on digital platforms.
This deal is possible because Pointsbet was recently designated as an authorised gaming operator of the MLB.
Pointsbet USA CEO Johnny Aitken said: “Pointsbet operates in rare space within the industry by owning our technology environment from end to end, which allows us to be extremely nimble on product innovation and personalised offerings to complement our app’s market-leading speed. We are excited to inject a unique and robust betting proposition into the great state of Michigan.”
Pointsbet didn’t designate this announcement as price sensitive announcement. Meaning, management don’t think it’s a large deal. But if Pointsbet can win more of these deals then combined it would be important. Sport betting could become a big thing in the US like it is in Australia.
However, I don’t know enough about the company (yet) to say if it’s worth buying today. I’d rather buy shares of Bubs (ASX: BUB).
Disclosure: At the time of writing, Jaz doesn’t own shares in any of the businesses mentioned.