Everything is bigger in Texas. And that includes the population of 29 million which alone is larger than all of Australia, opening up a lucrative expansion opportunity to Aussie sports betting company PointsBet (ASX: PBH) which has been appointed the Exclusive Sportsbook Partner of Major League Soccer team Austin FC.
The appointment will give PointsBet access to the Texan population once regulatory approvals are passed in the State Government to legalise sportsbetting. PointsBet expects that “legislation will be introduced in forthcoming sessions seeking to permit sports betting to be offered by racetracks and professional sporting teams/organizations both online and in person at racetracks and sporting stadiums,” according to the Company statement.
With the partnership, Austin FC will commence promotion work for PointsBet in Texas where its logos and branding will be erected at Q2 Stadium while the bookmakers can commence using Austin FC’s IP and logos in their own promotional materials.
Given the population size of Texas and its cultural significance across all levels of professional, collegiate and high school sports, the State is likely to be one of the highest turnover states for PointsBet, once sportsbetting is legalised.
“We are excited to join up with Austin FC in their inaugural season as a Founding Partner. Texas has the potential to be fantastic future market for PointsBet and given the shared values and vision between us and Austin FC we are excited to work together on bringing unforgettable experiences to the fans of Austin FC,” said PointsBet USA CEO, Johnny Aitken.
“In owning and operating our technology from end to end, PointsBet can innovate our product and personalise our offerings according to fan interest and needs – and we hope to be able to unveil our offering to Austin FC supporters in the near future when legislation permits.
“In the meantime, we look forward to the opening of the PointsBet SportsBar at the grounds of Austin FC and watching soccer in the amazing new MLS stadium.”
The market access agreement will run for 10 years from the date PointsBet first takes a bet in Texas. The bookmaker will pay market access fees to Q2 Stadium as well as a portion of net gaming revenues derived from any future sportsbook and iGaming operations in Texas via the licences granted to PointsBet.
While Texas is home to the 2 NFL teams, 3 NBA teams, 2 MLB teams and one NHL team, Austin FC only became the State’s first MLS team in 2021 prior to which it was the largest US State without an MLS team.
The partnership continues the bevy of partnerships that PointsBet is inking with professional leagues and teams to accelerate customer acquisition and market share growth following their entry into the United States in 2019. This came following a landmark Supreme Court ruling in 2018 that opened opportunities for individual States to legalise sportsbetting, and generate tax revenue from doing so.
Other partners signed with PointsBet for stadium access include the Detroit Tigers of the MLB, the Indiana Pacers and the Denver Nuggets of the NBA, the Indianapolis Colts and the Chicago Bears of the NFL and the Colorado Avalanche of the NHL.
The Company is also the Official Sports Betting Partner of the NHL which will driving marketing initiatives for their planned entry into Canada in 2022.
*Owners of this website are PBH shareholders
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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