The PointsBet Holdings Ltd (ASX: PBH) share price is having a tough day on Tuesday.
In early afternoon trade, the sports betting companyâs shares are down 7% to $2.60.
Why is the PointsBet share price sinking?
There are a couple of potential catalysts for the weakness in the PointsBet share price today.
The first is broad weakness in the tech sector following a poor night on Wall Streetâs tech-focused Nasdaq index. This saw Nasdaq-listed rival, DraftKings, lose approximately 4% of its value during overnight trade.
This weakness has seen most ASX tech shares tumble today, leading to the S&P ASX All Technology index trading 2% lower at the time of writing.
What else?
Also potentially weighing on the PointsBet share price is news that smaller rival Bluebet Holdings Ltd (ASX: BBT) will be joining the company in the Indiana market.
This morning, BlueBet revealed that it has signed a 10-year market access agreement with Caesars Entertainment to operate a new online sportsbook in Indiana under the ClutchBet B2C brand.
Though, it will have some catching up to do. PointsBet has been operating in the Indiana market since March 2020, so has a big head start.
Though, there certainly is a big enough market for both companies and their US rivals to work with. Indiana is a state of ~6.8 million people and first legalised online sports betting in October 2019.
Business has been booming since then. For example, during the last 12 months, the state generated $4.5 billion in wagering handle.
The post Why is the PointsBet share price sinking on Tuesday? appeared first on The Motley Fool Australia.
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More reading
- ASX 200 midday update: Tech shares tumble, Collins Foods jumps
- These are the 10 most shorted ASX shares
- Own PointsBet shares? Here’s what the SIG investment means for shareholders
- 5 things to watch on the ASX 200 on Wednesday
- Why GrainCorp, PointsBet, Weebit Nano, and Westpac shares are racing higher
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended BlueBet Holdings Ltd and Pointsbet Holdings Ltd. 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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