PointsBet share price sinks despite US expansion update

Four PointsBet customers and football fans put heads in hands and look disappointed while watching television

Four PointsBet customers and football fans put heads in hands and look disappointed while watching television

The PointsBet Holdings Ltd (ASX: PBH) share price is tumbling lower on Friday.

This is despite the release of a positive announcement by the sports betting company.

At the time of writing, the PointsBet share price is down 4.5% to $1.95.

Why is the Pointsbet share price falling?

The PointsBet share price has come under pressure on Friday after weakness in the tech sector offset the release of a positive announcement.

Investors have been selling tech shares after two very poor nights in a row for the NASDAQ index following the latest rate hike by the US Federal Reserve.

The central bank also reiterated its intention to make further aggressive hikes in an attempt to tame inflation, leading investors to believe that a recession is imminent.

At the time of writing, the S&P ASX All Technology index is down 2.6%.

What about the announcement?

Failing to boost the PointsBet share price today was news that the company has received launch authorisation from the Louisiana Gaming Control Board and has taken its first bet in the state.

This marks the 4th state launch under the partnership with Penn National Gaming announced on 1 August 2019 and represents the company’s 12th online sportsbook operation in the United States.

PointsBet is now active in New Jersey, Iowa, Indiana, Illinois, Colorado, Michigan, West Virginia, Virginia, New York, Pennsylvania, and Kansas.

PointsBet US CEO, Johnny Aitken, was pleased with the news. He said:

The PointsBet team is excited to share that we are now officially live in the Pelican state and that Louisiana is our twelfth state of online operations. The sports community of Louisiana, one that our very own brand ambassador Drew Brees is very familiar with, is unmatched with their devotion and passion for their local teams, the New Orleans Saints of the NFL, New Orleans Pelicans of the NBA and nationally recognized college football programs.

We look forward to delivering Louisiana sports fans, from Bourbon Street to the Bayou, our fast, premium sports betting products. And, with the NFL and CFB season in full swing, the timing is perfect to showcase our live betting capabilities.

The post PointsBet share price sinks despite US expansion update appeared first on The Motley Fool Australia.

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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 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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