The Pointsbet Holdings Ltd (ASX: PBH) share price has risen more than 3% after announcing an acquisition called Premier Turf Club.
What is Pointsbet’s acquisition?
Pointsbet USA has entered into an agreement to buy advance deposit wagering racing operator Premier Turf Club for US$2.9 million.
This business is licensed in Oregon and it’s set to situate Pointsbet within the growing US online racing market (thoroughbreds, harness and greyhounds) as the company continues to expand across the US.
Premier Turf Club has been in business over 13 years with the website BetPTC.com, which is overseen by general manager and long time industry executive Todd Bowker. Mr Bowker will become the Vice President of Racing for PointsBet USA.
Why is Pointsbet buying Premier Turf Club?
The company said racing has a unique role to play alongside sports wagering and iGaming in the US. The racing industry in the US generates over $12 billion of turnover annually.
Premier Turf Club has extensive industry expertise and relationships, customer-focused operations and excellent reputation, which will be immediately positive for the company as it enters new markets with premium products.
Management comments
Pointsbet USA CEO Johnny Aitken said: “Pointsbet is very pleased to join forces with Premier Turf Club. The combination of Premier Turf Club’s excellence in the space with Pointsbet’s mature market Australian racing expertise favourably positions us as we prepare to enter the US horseracing market. Today’s noteworthy acquisition complements our in-house approach while growing our premier product suite, and we are excited to welcome Premier Turf Club to the PointsBet team.”
Summary thoughts on the PointsBet share price
Pointsbet investors are excited about the acquisition, but it’s small at under US$3 million. It will be interesting to see how much of a difference it makes over the coming years.
The ASX share has a promising future in the US, it’s such a huge market. But now the company has to go and generate earnings to justify the excitement in the share price.
There are some other ASX growth shares that have less growth expectations baked in.
