The PointsBet Holdings Ltd (ASX: PBH) share price is making a strong comeback after sliding to 9-month lows last week.
At the time of writing, shares in the betting company are up 6.26% to $10.77.
What’s driving the PointsBet share price higher on Tuesday?
The PointsBet share price might be moving higher in response to broader market gains, with the S&P/ASX 200 Index (ASX: XJO) lifting 0.44% to a record high of 7,591.9 on Tuesday.
Many notable ASX 200 growth shares are pushing higher in today’s session. These include Pilbara Minerals Ltd (ASX: PLS), Afterpay Ltd (ASX: APT) and Aristocrat Leisure Limited (ASX: ALL) lifting 8.1%, 2.91% and 2.51% respectively.
The strong sentiment behind leading ASX 200 growth shares could be a factor propping up the PointsBet share price.
In addition, sports betting peers including BetMakers Technology Group Ltd (ASX: BET) and BlueBet Holdings Ltd (ASX: BBT) are also making headway. They are up 1.72% and 7.61% respectively.
Both betting peers are finding success in the United States.
On Tuesday, BlueBet revealed a second US sports betting agreement in an attempt to land itself a licence to operate in Arizona.
BetMakers revealed a major landmark achievement following the legalisation of fixed odds wagering in the state of New Jersey.
BetMakers said New Jersey now becomes the first state in the United States to offer fixed odds betting on horse racing, and “setting precedent legal framework that is relevant for our discussions with other states in the US”.
This move spells good news for the PointsBet share price. The company previously landed an agreement with BetMakers to operate fixed odds betting in New Jersey.
What about PointsBet’s capital raising?
It was an ugly day for PointsBet shareholders following the completion of its institutional placement and entitlement offer earlier this month. The PointsBet share price fell sharply on the news.
The capital raising would issue new shares at an 11.4% discount to its last closing price of $11.91 on Wednesday 28 July.
It’s common for shares to tumble following a capital raising, driven lower by factors such as the discount and share dilution.
It looks like the PointsBet share price has been able to digest the capital raising relatively quickly, and is closing in on where it left off.
The post Why the PointsBet share price is up 6% on Tuesday appeared first on The Motley Fool Australia.
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More reading
- Up 8%, the BlueBet (ASX:BBT) share price is booming on Tuesday. Here’s why
- ASX 200 Weekly Wrap: Blockbuster Afterpay deal turbocharges ASX to new record highs
- 3 exciting small cap ASX shares to watch
- 2 exciting ASX growth shares analysts love
- These were the worst performing ASX 200 shares last week
Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Betmakers Technology Group Ltd and Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd and Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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