PointsBet [ASX:PBH] rose on Friday after the bookmaker announced it has taken its first bet in the US state of Maryland.
While PBH shares jumped on Friday, the stock is still down 75% over the past 12 months.
PBH shares tumbled 30% in the past month alone following the bookmaker’s FY22 results, which showed widening losses and continued issues with cash burn.
Source: www.tradingview.com
PointsBet takes Maryland bets
PointsBet has taken its first retail sportsbook bet in the state of Maryland.
Online and retail sports betting is new in Maryland, thanks to new legislation signed by the state’s Governor Larry Hogan back in May 2021.
In June 2021, PBH secured online and retail market access in Maryland via a partnership with Riverboat on the Potomac.
While it secured access to the state more than a year ago, PBH did not elaborate why it took more than 12 months for the first bet to be taken.
In fact, the slog is set to continue, especially for its online segment.
PointsBet said it anticipates launching an online sportsbook operation in Maryland in ‘early Q3 FY23’.
The retail launch is the company’s 12th sportsbook operation to go live in the US.
PointsBet’s US CEO Johnny Aitken commented:
‘We are thrilled to be live in Maryland ahead of the commencement of the NFL season.
‘The first bet was taken on the Buffalo Bills, and we look forward to showcasing our product to the passionate, sports-loving community of Maryland.’
PointsBet bets big on US — but at what cost?
It hasn’t all been rosy for PointsBet in the US.
Earlier this week, a former PBH staffer spoke to an analyst via online service Stream about allegations of culture and strategy shortcomings in the US.
The former staffer was unnamed but vetted by Stream.
Stream services as a platform for investors to chat with former staff of companies investors are interested in.
The former employee also claimed that, despite PBH going in hard with US marketing, the ‘American market is not that interested in PointsBet brand’ with partnerships ‘dragging’ on company budgets more than assisting.
The ex-employee stated:
‘I’m very bearish because I don’t have any confidence in the US leadership delivering anything. Nothing has changed. While I was there, after I’ve left, it seems to be the same story.
‘They just don’t know what they’re doing. Nothing’s going to change if senior leadership stays the same, if the CEO of the US business stays the same.’
PBH was noted to reject the employee’s comments and stated they were ‘likely compensated for an interview with a third-party firm’ but did not offer further explanations.
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Regards,
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For Money Morning
