PointsBet (ASX:PBH) makes further inroads in the US with iGaming launch in Michigan

Summary

  • PointsBet's subsidiary, PointsBet Michigan, has commenced its iGaming operations and launched its iGaming operations in the US state.
  • The launch complements the Company's existing sports wagering products. It eliminates the disadvantage of customer acquisition, retention, as well as cross-sell compared to the operators with iGaming.
  • BofA Securities projects that iGaming revenue opportunity in North America could hit the US$7.6 billion mark by 2025.

PointsBet Holdings Limited (ASX:PBH), the corporate bookmaker with operations in Australia and the US, announced that its wholly owned subsidiary, PointsBet Michigan LLC, has been approved to start iGaming operations by Michigan Gaming Control Board. PBH has launched its iGaming operations in the state.

Source: © Dallaseventsinc | Megapixl.com

Following the release of the announcement, PointsBet's shares moved up and were trading at AU$14.190, up 0.996% (at AEST 2:22 PM). 

Other companies operating in the same space include Tabcorp Holdings Limited (ASX:TAH) and Betmakers Technology Group Ltd (ASX:BET), both of which were trading in the red zone.

INTERESTING READ: PointsBet hits near 3-week high on the acquisition of Irish Company

The launch of PointsBet's inaugural iGaming operation comes after Sport Wagering launch in Michigan on 22 January 2021. PointsBet Michigan would launch iGaming operation in June.

Source: © Dallaseventsinc | Megapixl.com

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About the launch of Sport Wagering

On 21 January 2021, PointsBet Michigan LLC was authorised by Michigan Gaming Control Board to start online sport betting operations from 22 January. Following this, Michigan became the 6th operational US state for PointsBet, after the launch in New Jersey, Iowa, Indiana, Illinois, and Colorado.

A Glance at iGaming Revenues in the US

The Company highlighted the iGaming revenues in the US have shot up since the Professional and Amateur Sports Protection Act was abolished in May 2018. Across New Jersey, Pennsylvania, Michigan, and West Virginia, the iGaming revenues surpassed US$770 million during the March 2021 quarter.

Between 2014 to 2018, New Jersey iGaming revenues grew at a CAGR of 25%. In 2019 and 2020, the revenue grew by 62% and 101%, respectively.

As per the projections of BofA Securities, iGaming revenue opportunity in North America could reach US$7.6 billion by 2025.

What did the management say?

As per Sam Swanell, Group CEO and Managing Director of PointsBet, the Company put together an extremely experienced iGaming team that built an in-house proprietary iGaming platform and administrative tools. Mr Swanell added:

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