Pointsbet Holdings Ltd (ASX: PBH) is holding its AGM, it announced another expansion in the US.
Pointsbet’s newest expansion
The company revealed today that it has launched in the state of Colarado. This represents the fifth online sportsbook in the US. The next launch is planned for Michigan in the third quarter of FY21.
Pointsbet had already signed a deal with the NBA’s Denver Nuggets, the NHL’s Colorado Avalanche and the National Lacrosse League’s Colorado Mammoth, and their home venue the Ball Arena. It’s also the exclusive partner of the Colorado Buffaloes.
Expanding in Colorado is extra meaningful for the company because it’s where the US HQ is based.
AGM details
Pointsbet said that it’s targeting a 10% market share of any state it enters.
Since the last AGM it has won or achieved a number of things.
It has secured online and retail sports betting market access in Kansas, iGaming market access in New Jersey and online sports betting and iGaming market access in Michigan.
Pointsbet has also launched retail and digital operations in Iowa and Illinois, as well as digital operations in Indiana. It’ll be launching in Michigan in the next few months.
Looking at the four major sports, it is a partner with the Detroit Tigers from the MLB, the Denver Nuggets and Indiana Pacers from the NBA, the Indianapolis Colts and Chicago Bears from the NFL and Colorado Avalanche from the NHL.
Pointsbet has also entered into a 5-year partnership with NBCUniversal, which will see it feature on various NBC broadcast and digital assets. Pointsbet will spend at least $393 million on media spend.
Summary thoughts
Pointsbet is making great progress in the US. It isn’t showing up in the earnings yet, but the company is setting the foundations for making good profit in the next few years.
I’m not sure if Pointsbet is ‘good value’ today, but it could be worth a small buy whilst it’s setting itself up. The US could be a huge market, so I think it could be worth owning today if you believe it has a strong long term future.
But there are other ASX growth shares that are rapidly growing in the US that I’d prefer even more, such as Pushpay Holdings Ltd (ASX: PPH).
