The Pointsbet Holdings Ltd (ASX: PBH) share price is going to be on watch today after revealing it has secured more market access.
Pointsbet increases US market access
The company announced that its Maryland (US) subsidiary PointsBet Maryland has entered into an agreement with The Riverboat on-the-Potomac to provide online and retail sports wagering in the state of Maryland, subject to the receipt of necessary regulatory approvals and licensure.
On 18 May 2021, Maryland Governor Larry Hogan signed legislation allowing both online and retail sports betting in the State.
Riverboat Group is a licensed satellite simulcast facility for horseracing and minority owned small business located in Charles County, Maryland.
The agreement involves PointsBet and the Riverboat Group partnering to launch online and retail sports wagering in the state. This agreement is for an initial 10-year period.
PointsBet will pay to Riverboat Group online and retail sportsbook market access fees as well as a portion of the net gaming revenues derived from the online and retail sportsbook operations.
PointsBet will be responsible for the licensing and regulatory costs in connection with launching and operating the PointsBet services.
One of the features of the agreement is that neither party may terminate for convenience during the term.
Management comments
PointsBet USA CEO Johnny Aitken said: “With terrific partners in The Riverboat on-the-Potomac, PointsBet is thrilled to begin the process toward offering the passionate, sports-loving community of Maryland with the fastest and most differentiated sports betting product across every customer touchpoint.”
Summary thoughts on PointsBet and the share price
The business is doing the right things to set the foundations to be able to generate significant earnings in the US in the coming years. It’s rapidly gaining access across many US states. I’m not sure how big it can become, but it might be able to become a presence on many US TVs that are watching sports.
It’s one of the ASX growth shares worth putting on the watchlist, though there are other businesses that are further on with their growth journey.
