Companies are borrowing big as they gear up to chase the earning upgrade cycle, according to data from Australia’s biggest bank.

Commonwealth Bank of Australia (ASX: CBA) reported a 21% surge in equipment and machinery financing in May compared to the same time last year.

Government incentives and the resurging economy is prompting companies to increase their capex, and several ASX shares could get a nice earnings boost from this trend.

Companies investing to chase higher profits

We have seen more companies issue earnings upgrades than downgrades recently. The RBA’s forecast 4.75% growth for the Australian this calendar year is fuelling the upcycle.

Australian companies are buying more equipment and expanding their operations to keep pace with demand.

The federal government’s tax incentives for businesses to invest is providing an important second tailwind too.

Sectors benefiting from capex boom

This puts a number of sectors in a sweet spot to reap the benefits, according Commonwealth Bank.

“The construction industry in particular, has benefited from multiple government stimulus packages, including record investments in public infrastructure projects and the Homebuilder grant,” said CBA’s Executive General Manager Business Lending, Clare Morgan.

“We’re also seeing strong demand for vehicle financing and machinery, particularly in the food manufacturing and agriculture sectors.”

ASX shares best placed to profit from increase spending

This explains why construction materials shares on the ASX have outperformed this year. The Boral Limited (ASX: BLD) share price and BlueScope Steel Limited (ASX: BSL) share price are but two examples.

The sharp rebound in vehicle sales has also put the Eagers Automotive Ltd (ASX: APE) share price and ARB Corporation Limited (ASX: ARB) share price in the overtaking lane.

Caterpillar equipment dealer Seven Group Holdings Ltd (ASX: SVW) should also be smiling in the current environment.

Morgan noted that demand for agriculture machinery is the highest she’s seen in several years.

Bright outlook for these other ASX shares

If agriculture is booming, then other ASX suppliers to the sector should also be well placed to deliver improved results. The Nufarm Ltd (ASX: NUF) share price and Elders Ltd (ASX: ELD) share price are among the more obvious names in this space.

Meanwhile, IT equipment retailers are also making hay while the sun shines. CBA recorded a 43% increase in computers and a 75% increase in laptops financed as people look for ways to stay connected remotely.

But investors in JB Hi-Fi Limited (ASX: JBH) and Harvey Norman Holdings Limited (ASX: HVN) probably have already caught on to this fun fact.

The post The ASX shares benefiting the most from the company spending boom appeared first on The Motley Fool Australia.

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Brendon Lau owns shares of Commonwealth Bank of Australia, BlueScope Steel Limited, Elders Ltd, Nufarm Limited and Seven Group Holdings. Follow me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Corporation Limited and Elders Limited. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) subsidiary Google has agreed to pay French regulators 220 million euros as part of a settlement in an antitrust case.

The 220 million euros — about $268 million — is just a slap on the wrist for the advertising giant, which generated $16.4 billion in operating income in the first quarter alone. The bigger penalty is the changes Google agreed to make with how it conducts its ads business, and Google may preemptively follow the same course in other markets.

Here’s what investors need to know.

Too much control over data

The antitrust case brought forth by French authorities alleged Google privileged its own ad-buying tools — Google AdX and DoubleClick for Publishers — by allowing data to flow more freely between the two services.

Here’s how that works in practical terms. When a publisher wants to fill excess ad inventory on its website, it uses a supply-side platform to put it up for auction across ad exchanges. Ad buyers are able to place bids on an exchange based on various criteria known about the website and the visitor.

The ad server will collect bids across multiple exchanges, and it fills inventory with the ads from the highest bidders across all the exchanges it works with. Google’s server, formerly known as DoubleClick for Publishers, is one of the most popular among publishers.

But Google also operates an exchange, AdX. Google’s ad server can collect data on what it saw on other exchanges, such as the price of winning bids, and it can (and currently does) share those data with AdX bidders. Additionally, AdX worked well with Google’s own ad server, but it doesn’t work so well with competing ad servers, reinforcing the use of DoubleClick for Publishers among website operators.

That free exchange of data among Google’s products while limiting data and use for other ad tools is what upset publishers and convinced regulators to act.

What’s changing?

Google plans to develop some solutions to address the issues brought forth in the case.

First, it intends to make it easier for bidders on other exchanges to access data from its ad server, including the minimum bid to win for auctions it previously privileged AdX with. The company mentioned it could face a technical challenge in some cases where bids take place outside of its ad platform, but it will work to offer as much data as it can.

Additionally, Google said it will be “implementing product changes that improve interoperability between Ad Manager and third-party ad servers.” In other words, it won’t force (for lack of a better word) publishers to use its own ad server in order to get access to bidders on its ad exchange.

On top of that, the company reaffirmed its commitment not to use data from other supply-side platforms on its own ad exchange in a way its competitors are incapable of reproducing.

Importantly, these changes may not be exclusive to France. In a blog post announcing the moves, the company wrote, “We will be testing and developing these changes over the coming months before rolling them out more broadly, including some globally.” Google may make the changes preemptively as it faces the threat of antitrust accusations all over the world. It could help mitigate any regulatory fines the company attracts in the future.

What it means for investors

Google’s Ad Manager — which now encompasses both its exchange and server products — is part of Alphabet’s Google Network segment. In 2019 and 2020, Google Network ad revenue accounted for nearly 16% of Google’s total ad revenue. That’s not massive, but it’s still significant nonetheless. The segment’s growing roughly in line with ad revenue from Google’s own properties outside of YouTube.

Implementing the changes above globally will likely have a negative impact on revenue growth from the segment going forward. So, it could fall to become a smaller piece of the business over time as YouTube and Google’s own websites grow faster. 

Moreover, it’s an admission that Google isn’t completely immune to antitrust regulators making significant changes to its business practices, and that additional antitrust cases around the world could impact revenue further.

That said, the threat of increased regulation has been a major risk when investing in FAANG stocks for some time. Investors that are comfortable with the risk may still find Alphabet shares attractive, especially as the market digests the news about the settlement in France.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Google’s making an important change to its ad business appeared first on The Motley Fool Australia.

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Adam Levy owns shares of Alphabet (C shares). Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares) and Alphabet (C shares). The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The GameStop Corp (NYSE: GME) share price is trading lower after hours following the release of the company’s FY21 first-quarter result.

At the time of writing, the GameStop share price is down 5.4% to US$286 after hours.

Let’s have a look at the results for the company that has been at the centre of meme-stock speculation.

Sales growth and narrowed losses

While some commentators have sworn off GameStop shares as pure speculation, the global games retailer is certainly putting up a fight.

First-quarter results show a net sales increase of 25.1% to US$1.277 billion. The company managed to achieve this growth despite a 12% reduction in its global store presence.

A decline in expenses also fed into GameStop’s operating loss being narrowed. For the reported period, the company delivered an operating loss of US$40.8 million compared to US$108 million for the prior corresponding period.

The improved performance follows the company’s very public decision to evolve and pursue a stronger e-commerce form.

GameStop shares unfazed by new CEO and CFO

In addition to the financial results, the company announced a couple of new appointments. In an endeavour to add gaming, retail, and technology experience, GameStop is refreshing the chief executive officer and chief financial officer roles.

The new CEO is former Amazon.com Inc (NASDAQ: AMZN) executive Matt Furlong. Filling the CFO spot, Mike Recupero also comes from Amazon, with over 17 years in various finance roles.

Exiting CEO George Sherman left a message to shareholders on the conference call:

Given this is my last time speaking with you as GameStop CEO, I want to share that I am very proud of what we have accomplished over the past two years, including navigating the pandemic, positioning the company with strong liquidity, and an improved platform for growth. It’s been a privilege to lead so many dedicated and talented team members who collectively possess a tremendous passion for the gaming industry.

As recently reported by Motley Fool US, prior to today’s release, Gamestop shares had also “fallen sharply in 9 of the past 10 quarters the day after it reports earnings.”

The post GameStop (NYSE:GME) share price slides despite 25% sales jump appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Mitchell Lawler 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 Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Cryptocurrency enthusiasts and blockchain backers see serious potential for top coins like Bitcoin and Ethereum, which could upend traditional financial systems and impact a wide array of industries.

But there’s almost nothing serious about Dogecoin (CRYPTO: DOGE), a so-called “joke” coin that was inspired by a meme of a Shiba Inu dog. Actually, there is one serious detail: the price gains that Dogecoin has experienced so far in 2021. Dogecoin started the year at less than a penny per coin before surging in late January, as a byproduct of the meme stock trend that impacted GameStop, AMC, and others.

But Dogecoin hasn’t backed down: it reached a high above $0.73 in May amid the most recent bull run. While it’s currently off that mark by over 50% amid wider crypto market declines, Dogecoin’s price still sits about 60 times higher than it did on January 1 and it has high-profile advocates nudging it forward. Here’s a brief look at how Dogecoin became much more than just a meme.

A New Breed

Dogecoin’s origins are a joke. Inspired by the famous Doge meme and the early rise of a nascent Bitcoin in 2013, Adobe software engineer Jackson Palmer posited the idea of Dogecoin as satire. Palmer’s idea was put into action when he partnered with IBM software engineer Billy Markus soon after, with Dogecoin’s code based on the existing cryptocurrency Litecoin.

Dogecoin investors embraced the goofiness and offbeat origins of the coin, with community members raising money to sponsor a NASCAR vehicle and send the Jamaican bobsled team to the Winter Olympics in 2014. In the years that followed, Dogecoin largely languished on the fringes of the crypto market with a price at a fraction of a penny. After all, it was designed as a joke. It was never really going to be worth anything, right?

In summer 2020, Dogecoin began to earn more attention on social media, including from Tesla and SpaceX CEO Elon Musk as well as YouTube star Jake Paul. Attempts to pump the price up to $1 per coin didn’t pan out, but the price did start gradually creeping up toward the end of the year — even though it still mostly sat beneath one cent per coin.

The Dog Days End

Amidst January’s meme stock fiasco, in which social media-led buying sprees sent the prices for GameStop, AMC, and other stocks soaring, investors began looking for the next stock to buy cheap and try to pump to startling new heights. In just over a week, Dogecoin’s price jumped from under a penny to nearly $0.08 per coin, before settling around $0.05 for most of spring.

Things only got wilder after that. Dogecoin popped up to $0.40 per coin in April before pulling back but then leapt again to an all-time high of $0.73 in early May. The wider crypto market has been down since then, in part due to Tesla halting Bitcoin payments for its cars due to the environmental impact of cryptocurrency mining. Even at around half the all-time high price, Dogecoin is still up about 6,000% from the start of the year — giving it around a $44 billion market cap.

Dogecoin still has its doubters and seems more susceptible to the whims of social media sentiment and influencers than other, less-volatile cryptocurrencies. But it also has more true believers than ever, including Musk—who is working with Dogecoin developers—and billionaire investor Mark Cuban, whose Dallas Mavericks NBA team accepts DOGE for merchandise purchases. It also has copycat coins, like Shiba Inu.

Even so, despite the considerable and rapid rise in price, it’s tough to call Dogecoin a serious investment. It’s more like a rollercoaster: strap in and enjoy the ride, and pray that you don’t feel sick in the end.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post How Dogecoin rose from meme to major cryptocurrency appeared first on The Motley Fool Australia.

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Andrew Hayward owns Dogecoin, Bitcoin, and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adobe Systems. The Motley Fool Australia has recommended Adobe Systems. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Shares in Plenti Group Limited (ASX: PLT) have had a great run lately, up 13% in the last 8 days. The Plenti Group share price was trading up 3.8% at $1.21 at yesterday’s close.

Melbourne broker Shaw and Partners is bullish on the technology stock. We examine why below.

But first, a quick look at the company

Plenti is a technology-led consumer lending and investment company that has three revenue streams.

Firstly, it provides automotive lending for the hire or purchase of new vehicles. Secondly, it provides renewable energy lending for the purchase and installation of renewable energy products such as solar panels and batteries.

And finally, it also focuses on personal lending, providing fixed-term, unsecured, interest-bearing loans used for a wide variety of purposes.

Broker expects big things

Shaw and Partners is bullish on the Plenti Group share price, yesterday issuing a buy recommendation and a price target of $1.74.

“Plenti presents a compelling opportunity to invest in a fintech lender with a premium quality loan book,” the broker said in its report to investors yesterday.

Shaw and Partners also pointed to favourable net interest margins (NIM) and high return on equity (ROE) metrics.  A NIM is the difference between the interest income earned and the interest paid by the financial institution.

Further, the broker points to Plenti Group’s diversified loan book approaching $1.0bn. The business posted record quarterly loan originations in each lending vertical, across automotive, renewable energy and personal loans. Its total loan portfolio increased to $615 million, 61% above the prior corresponding period.

Despite the positive reports, Shaw and Partners did warn of risk in the report.

Specifically, it sees Plenti’s Venus Platform as technologically superior to other offerings in the fintech market. However, as technology evolves, this may not always be the case. “These changes may lead to a requirement for Plenti to redevelop its lending platform in order to remain competitive,” the broker said.

With the Plenti Group share price currently at $1.21 and a price target at $1.74, the broker is tipping plenty of room for more growth in the company.

The post Broker tips Plenti Group (ASX:PLT) share price to shoot higher appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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The Woolworths Group Ltd (ASX: WOW) share price will be on watch this morning.

This follows a positive development today in relation to a proposed investment.

What is happening?

This morning the retail conglomerate revealed that the Australian Competition and Consumer Commission (ACCC) has completed its review of the proposed acquisition of PFD Food Services.

PFD Food Services is one of Australia’s leading food service suppliers, which Woolworths is aiming to acquire a 65% stake in for a total consideration of $552 million.

The good news is that the ACCC has revealed that it will not oppose its strategic investment in PFD Food Services. As a result, Woolworths expects to complete its investment by the end of June.

Woolworths CEO, Brad Banducci, was pleased with the news.

He said: “We’re pleased to have approval to invest alongside the Smith family in PFD Food Services. They are a great Australian success story and a well respected business with both suppliers and customers in the food service industry. This investment is a logical adjacency for Woolworths Group and further supports the evolution of the Group into a Food and Everyday Needs Ecosystem.”

Upon its initial announcement last year, Mr Banducci revealed that the deal is expected to unlock synergies and support its growth.

“The investment will also unlock synergies for both businesses across the combined network and fleet. We will help to support PFD’s growth through access to our logistics, digital and data analytics and operational capabilities. For Woolworths Group, it will enhance store range localisation and provide fleet synergies through better route and capacity optimisation across our combined network,” he explained

What now?

Despite the investment, PFD Food Services will continue to operate independently and be led by its CEO Kerry Smith. A separate board and governance structure will now be implemented.

PFD Food Services CEO, Kerry Smith, commented: “At PFD, we pride ourselves on the strength of our customer and supplier relationships and that will remain unchanged as a result of this investment. We look forward to continuing to drive innovation in the industry and serving the evolving needs of our customers, suppliers and the broader community.”

The post Woolworths (ASX:WOW) share price on watch after ACCC approves PFD deal appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Woolworths Limited. 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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Earlier today I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

St Barbara Ltd (ASX: SBM)

According to a note out of Macquarie, its analysts have retained their underperform rating and $1.70 price target on this gold miner’s shares. The broker has been looking at the gold sector. It believes the recent rally in the price of the precious metal will be fleeting and expects actions by the US Federal Reserve to push it lower. In light of this, it doesn’t see enough value in St Barbara at the current level to be more positive. Particularly given issues at its Gwalia operation. The St Barbara share price is currently trading at $1.81.

Woolworths Group Ltd (ASX: WOW)

A note out of Credit Suisse reveals that its analysts have downgraded this retail giant’s shares to an underperform rating and trimmed the price target on them to $37.98. The broker has made the move after looking over the company’s demerger of its Endeavour Group business. After factoring everything in, the broker believes its shares are overvalued, hence the downgrade. The Woolworths share price is fetching $42.63.

Zip Co Ltd (ASX: Z1P)

Analysts at UBS have retained their sell rating and $5.60 price target on this buy now pay later (BNPL) provider’s shares. According to the note, the broker fears that Zip’s US business could be seriously impacted if one of the major US banks decides to copy Commonwealth Bank of Australia (ASX: CBA) by entering the BNPL market. It worries that Quadpay’s Pay Anywhere product could ultimately be rendered obsolete if a bank offers a similar product. It doesn’t believe consumers will pay $1 per transaction if there’s a free alternative. The Zip share price is currently trading at $6.82.

The post Top brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

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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 and has recommended ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Woolworths Limited. 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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The S&P/ASX 50 index is home to 50 of the largest listed companies on the Australian share market. This means the index is home to many of the highest quality and most well-known companies that the ANZ region has to offer.

Two ASX 50 shares to consider are below:

Lendlease Group (ASX: LLC)

The first ASX 50 share to look at is Lendlease. It is a global property and infrastructure company that is going through a major transformation.

This has seen Lendlease divest its struggling engineering business and shift its business model and earnings mix to be more in line with the highly successful Goodman Group (ASX: GMG).

Analysts at Goldman Sachs are positive on its transformation and believes its shares could re-rate to higher multiples once it begins to demonstrate that it is successfully executing on its new strategy.

For now, though, the broker still sees a lot of value in its shares at the current level. Goldman has a buy rating and $16.54 price target on the company’s shares.

Xero Limited (ASX: XRO)

Another ASX 50 share to look at is Xero. It provides small and medium sized businesses with a cloud-based full service business and accounting solution.

Analysts at Goldman Sachs are also positive on Xero. They believe the company it is well-placed for strong top line growth. In fact, the broker feels it could deliver strong revenue growth for multiple decades if everything goes to plan.

The key to this will be its international expansion and the successful monetisation of its app ecosystem. The latter has been boosted in recent years through the acquisition of a number of companies that have strengthened its offering such as Tickstar and Planday.

Goldman Sachs currently has a buy rating and $153.00 price target on its shares.

The post 2 buy-rated ASX 50 shares appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Xero. The Motley Fool Australia owns shares of and has recommended Xero. 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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How much money does it take to make Australia’s top 1%? The whole concept of the ‘1%’ has wormed its way into popular culture over the past decade or so. It’s a handy way of describing the wealthiest sliver of Australians.

So how much does it take to make it into this most exclusive of clubs? Well, that’s what a report in The Sydney Morning Herald (SMH) attempted to answer this week.

The SMH analysed income and taxation data from the Australian Taxation Office (ATO) from the 2018-19 financial year to answer this question. The results make for some interesting reading.

What does it take to make the 1%?

So according to the report, one would need an annual income of at least $350,000 to be in the top 1% of income earners in the country. Notably, the report also points out that to be in the top 1% over in the United States of America, you would instead need to have an annual income of $700,000 instead. Land of the free indeed. But back to Australia.

This 1% includes approximately 82,000 men and 28,000 women. Of those ‘1% men’, the average annual income was $760,853, whilst for the women, it was slightly lower at $753,481. Combined, those 110,000 taxpayers fronted up 17% of the entire country’s income tax pool.

Taxpayers qualifying for the top bracket of income tax (on income above $180,000) contributed roughly a third of the income tax take. So what do these high flyers end to do for a living? Well, the report found that the top paid positions in the country are surgeons (with an average taxable income of $394,303), followed by anaesthetists ($386,065), and internal medicine specialists ($304,752).

Some interesting geographical insights were discussed too. The top-earning postcode in New South Wales was 2028, which encompasses the Sydney suburb of Double Bay. Melbourne’s most affluent postcode was 3142, which includes Toorak and Hawksburn.

The report also found that 4 out of 5 Australians earn less than $100,000 annually – reportedly the lowest on record. In 2012-13 for example, the number was 9 in 10. So if you’re on $100k or more, congratulations, you’re in the top 20% of Aussie income earners. If not, don’t worry, you’re in the good company of 80% of Aussies.

The post How much does it take to make Australia’s wealthiest 1%? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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The PointsBet Holdings Ltd (ASX: PBH) share price will be one to watch on Thursday.

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

What did PointsBet announce?

This morning PointsBet announced that it will be entering into a new market in the United States in the near future.

According to the release, the company has entered into an agreement with The Riverboat on-the-Potomac. It is a licensed satellite simulcast facility for horse racing and minority owned small businesses located in Charles County, Maryland.

Under the 10-year agreement, PointsBet will partner with The Riverboat on-the-Potomac to provide online and retail sports wagering in the state of Maryland.

This is subject to the receipt of all necessary regulatory approvals and licenses, and follows Maryland Governor Larry Hogan signing legislation allowing both online and retail sports betting in the State on 18 May.

Once in action, PointsBet will pay The Riverboat on-the-Potomac online and retail sportsbook market access fees, as well as a portion of the Net Gaming Revenues derived from the online and retail sportsbook operations. PointsBet will be responsible for the licensing and regulatory costs.

Management commentary

PointsBet USA CEO, Johnny Aitken, commented: “With terrific partners in The Riverboat on-the-Potomac, PointsBet is thrilled to begin the process toward offering the passionate, sports-loving community of Maryland with the fastest and most differentiated sports betting product across every customer touchpoint.”

This sentiment was echoed by Winston DeLattiboudere, Co-Managing Member of The Riverboat on-the-Potomac.

He said: “We’re excited about this new endeavor and are proud to be partnering with a company that understands and believes in the value of inclusiveness in every facet of the industry, from the owners to the bettors. I am also grateful to the Maryland General Assembly for passing legislation which helped to make this enormous opportunity a reality. We look forward to a future filled with phenomenal successes not only for our partners but for the citizens of Maryland and their communities.”

The post Why the PointsBet (ASX:PBH) share price will be on watch today appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of 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 Bruce Jackson.

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