The PointsBet Holdings Ltd (ASX: PBH) share price has been a strong performer on Thursday.
In morning trade the sports betting company’s shares are up over 10% to $6.09.
Why is the PointsBet share price storming higher?
Investors have been buying PointsBet’s shares after it announced an agreement with BetMakers Technology Group Ltd (ASX: BET). That agreement will see it offer fixed odds betting on horse racing in New Jersey, subject to the receipt of all necessary regulatory and other approvals.
This follows BetMakers signing an exclusive 10-year agreement with New Jersey Thoroughbred Horsemen Association and Darby Development in February to deliver and manage fixed odds horse racing in New Jersey.
According to the release, the agreement sees Pointsbet offer fixed odds betting to New Jersey clients on all Monmouth Park race meetings. After which, it intends to expand the offering into New Jersey to include races and vision from other domestic and international jurisdictions, as and when such content is approved.
In addition to this, the agreement also provides the option for PointsBet to offer fixed odds betting on horse racing to clients in other US states via BetMakers in the future should the opportunity arise.
“Significant opportunity.”
PointsBet Group CEO and Managing Director, Sam Swanell, was pleased with the agreement.
He said: “Securing an agreement with BetMakers is a major step in what we believe to be an important strategy for our US plans. As a Company, we understand thoroughbred, harness and greyhound racing and we intend to capitalise on the expertise we have gained in Australia as we roll out racing products into the US market where legal, starting in New Jersey.”
“We see this as a significant opportunity. Annually, there are twice as many horse races in the US as there are in Australia, with a much larger total prize pool, however the amount wagered per capita in the US on horse racing remains a fraction of that in Australia,” he concluded.
BetMakers CEO, Todd Buckingham, spoke positively on the agreement. He commented: “BetMakers sees Pointsbet as a perfect partner to launch Fixed Odds in the US. We have a great working relationship with Pointsbet, which is one of the fastest growing bookmakers in Australia and the burgeoning US market.”
This news has gone down well with BetMakers shareholders as well. At the time of writing the BetMakers share price is up over 10% to 42 cents.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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