Pointsbet (ASX:PBH) is an online sports betting company. Focused on the US market, Pointsbet has seen rapid success with new partnerships and the fast-paced legalisation of sports betting across the United States.
The company made its ASX debut on June 12, 2019 at an IPO price of $2. As of August 2019, Pointsbet had gained over 50 per cent on its share price. In the same month, they announced a bold plan to build their own casino in Colorado, with others to follow in five other US states.
Considered to be the third largest player in the US sports betting market, which is valued at over $100 billion, Pointsbet has license agreements with casinos and race tracks in several US states. These include New Jersey, Iowa, Colorado and Illinois.
A Pointsbet presentation puts the value of the US sports betting and gaming markets at between $US12 and $US20 billion, and the company’s net win in the September quarter was $35 million, up 178 per cent on the corresponding 2019 period. The company attributes its growing bank balance to product improvements and racing turnover growth outperforming its competitors.
During the initial suspension of professional sports leagues due to COVID-19, Pointsbet continued to offer horse racing odds. Since then, Pointsbet has seen their share price rise by 750 per cent.