The North American sports betting industry continues to scale to new highs as punters in Maryland have now gained access to sports betting with PointsBet (ASX: PBH), which continues its national expansion.
Punters from Maryland have recently seen a considerable change in their access to retail sports betting following new legislation signed by Maryland Gov. Larry Hogan on 18 May 2021. The ruling officially decriminalised online and retail sports betting (where you visit a venue), allowing punters to access betting markets on their favourite sports via approved bookmakers.
If you have been following the news you will know PointsBet has been spearheading itself into the US wagering scene via colossal sales and marketing spend.
Outlined in their 2022 Annual Report, the Group recorded its second straight year of losses, where its net loss came in at -$266 million, down from -$187 million the year prior. At the same time, the Group’s total spending on sales and marketing swelled to $237 million, with $162 million of that set aside for the US alone.
PointsBet have been waiting for the announcement of the new legislation in Maryland – after successfully being one of the first to pursue online betting in the US, PointsBet aimed to seize as much retail betting market share as possible before competing bookmakers jump in line and steal potential customers or are themselves acquired by a rival that doesn’t want to jump over all the regulatory hurdles PointsBet are charging at.
To secure its access to the states betting market, PointsBet partnered with Riverboat on-the-Potomac in June 2021, a licensed satellite simulcast (broadcasting) facility for horse racing across Maryland that guarantees access to online and retail betting markets.
Being in partnership with a licensed betting facility, with reaches all around the state, PointsBet aims to launch more retail locations across Maryland, with expectations just in time for the NFL season, which started today.
“We are thrilled to be live in Maryland ahead of the commencement of the NFL season,” said PointsBet US CEO, Johnny Aitken.
While the first bet was taken at a retail location, PointsBet anticipates launching its full online sports betting service for residents of Maryland in early Q3 FY23.
The successful entry into Maryland represents the Company’s 12th state entry where they have commenced wagering operations. Excluding today’s addition, the Bookie’s portfolio consists of New Jersey, Iowa, Indiana, Illinois, Colorado, Michigan, West Virginia, Virginia, New York, Pennsylvania, and most recently, Kansas, where they completed their first online bet on 1 September 2022.
With the Company erasing 88% of its market cap from $17.59 per share to a low of $1.92 in January 2021, PBH shares will hopefully see a turnaround as its foothold in the North American market continues to cement itself. PBH shares were trading at $2.33 at the time of writing.
Trading Desk Assistant at Emerald Financial
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