Consensus community valuation
$12.94
Average Intrinsic Value
9.6%
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#Bull Case
Added 5 days ago

From the Fool website  -  PBH Down 9%, Here’s why.

Just as the PointsBet Holdings Ltd (ASX: PBH) share price flashes a glimmer of hope, it comes crashing down in today’s session, down 8.8% to $12.39. 

The PointsBet share price was able to edge higher in the last two weeks, driven by a strong third-quarter update, the launch of its iGaming platform in Michigan and a small US$2.9 million acquisition.

What’s driving the PointsBet share price lower? 

The PointsBet share price is swimming against the tide today with the S&P/ASX 200 Index (ASX: XJO) falling 1.30% and the S&P/ASX 200 Info Tech (INDEXASX: XIJ) falling 3.80%. 

Another contributing factor to the weakness in PointsBet shares could be the weakness in its key US-listed rival, Draftkings Inc (NASDAQ: DKNG)

Could Draftkings influence the PointsBet share price? 

PointsBet competes with Draftkings for market share in the significant US sports betting and iGaming market. 

The Draftkings share price has taken an almost 20% dive in the last three trading sessions. Despite the company’s upbeat first-quarter results and guidance upgrade on 7 May, its shares were met with the increasing occurrence of good news into a sharp share price sell off.  

DraftKings delivered a 253% increase in revenues to US$312 compared to a year ago, beating analyst estimates of US$236 million. The company also reported a 114% increase in monthly unique payers of 1.54 million. This strong result was driven by factors including increased engagement, customer retention, successful product cross-selling and major sporting events such as the Super Bowl.

A key positive that PointsBet could take away from the DraftKings result was its guidance upgrade. DraftKings raised its full-year guidance from US$0.9  billion to US$1.0 billion to $1.15 billion to $1.05 billion. 

Foolish takeaway

The US sports betting scene continues to develop in favour of betting companies. Currently, there are 21 states and the District of Columbia that allow online sports betting, up from 20 in the last quarter. There are also an additional six states that have legalised sports betting but not yet operational and 13 states working towards legalisation. 

Despite the growth opportunity at hand, the significant 9% selloff in the PointsBet share price today looks largely outside of its control. The whipsaw like action for the PointsBet share price is a more likely reflection of today’s challenging market environment for growth and tech shares

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#Bull Case
Added 7 days ago

Not a secret that I'm a huge fan of PointsBet and they're incredibly strong third-quarter reports provided significant confidence that this company has hit momentum which may only continue to gain strength moving forward.

Yeah sure, sports betting is their current may produce but,, but, but the elephant in the room is igaming where income will significantly boost and bolster the coffers of this great Aussie company battling toe to toe the big boys in the USofA, and winning. 

With igaming now firmlyup and running in state of Michigan, PointsBet will soon launch its igaming platform in the great state of New Jersey during the month of June and in other states such as Pennsylvania prior to year ending. 

I have watched and listen the so-called Australian experts run down the chances of this great Aussie battling company month after month I need to be proven wrong month after month.  This company has surprised and will continue to surprise, it is an Australian after all and that alone, can never be underestimated. 

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#ASX Announcements
Added 4 weeks ago

Points Bet Announces Completion of Banach Acquisition

Melbourne, Australia, 21 April 2021 – PointsBet Holdings Limited (ASX:PBH) (the “Company”) is pleased to announce that the acquisition of Banach Technologies Limited (Banach), announced on 16 March 2021, was completed on Tuesday, 20 April 2021 (Irish time).

This acquisition will position PointsBet as a leader of in-play sports wagering in the United States, just as in-play wagering is expected to grow exponentially. Within the next 3 years, in-play wagering is expected to represent c. 75% of all sports wagering activity in the United States.

This acquisition accelerates PointsBet’s technology roadmap and places the Company in a prime position to take advantage of this growth in sports betting activity in the United States. Additionally, through highly sophisticated risk management algorithms and deep trading experience, Banach’s technology will allow PointsBet to optimise achieved margin and offer superior value to their customers.

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#Bull Case
Added 2 months ago

Canadian Sports betting bill approved overnight, access to two additional USA states as announced this morning including i gaming being the sleeping giant for PBH. BPH ticking all the right boxes.

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#ASX Announcement 26/3/21
Added 2 months ago

PointsBet Secures Sports Betting and iGaming Market Access in Pennsylvania and Mississippi

26 March 2021 - Melbourne, Australia - PointsBet Holdings Limited (ASX: PBH) (the “Company”) today announced that its wholly owned subsidiary, PointsBet USA Inc. (“PointsBet”), and Penn National Gaming Inc. (NASDAQ: PENN) (“PNG”) have agreed to extend the Online Gaming Services Framework Agreement dated 31 July 2019 (the “Agreement”) to provide PointsBet with online sports betting and iGaming market access in Pennsylvania and Mississippi (the “Additional States”), subject to enabling legislation (in Mississippi) and licensure in each of those States. Pennsylvania currently permits online sports betting and iGaming (the "Transaction").

As part of the Transaction, PointsBet has agreed to release PNG and Penn Interactive Ventures, LLC ("PIV") and their respective affiliates from the disposal restrictions contained in Section 6.4(a) of the subscription agreement entered between, among others, the Company, PointsBet, PNG and PIV dated 31 July 2019 (details of which were disclosed to ASX on 1 August 2019) ("Subscription Agreement") in respect of the securities which were acquired by PIV under the Subscription Agreement. Such restrictions were due to expire on 1 August 2021. All other equity restrictions in the Subscription Agreement remain unchanged.

Key features of the expanded partnership

  •  The term of the Market Access Agreement for each Additional State is twenty (20) years from the date the PointsBet branded service is first offered to PointsBet players in the applicable State.
  •  The agreement expands PointsBet’s United States sports betting footprint to 14 States (subject to the passing of enabling legislation and licensure as relevant).
  •  PointsBet will be responsible for all licensing and approval costs in connection with launching and operating the PointsBet services (including, those associated with the licensed operator obtaining and maintaining the applicable B2C Operating Licenses required for PointsBet to operate the services in each Additional State).
  •  PointsBet will pay PNG a portion of the Net Gaming Revenues derived from each Additional State.

DISC: I hold

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#Bull Case
Added 2 months ago

Tonight (25/32921) Canadian parliament votes on Bill C-218 – an act to amend the Criminal Code that would legalize single-event sports betting in Canada
 

It is widely anticipated that Bill C-218 passes and is enacted into legislation legalising online sports betting in Canada. 
 

pointsbet are planned, resourced and poised to establish base in Canada expanding their products to Australia, USA and Canada

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#ASX Announcement - New Initial
Added 3 months ago

UBS as the broker for various managed funds has become a substantial shareholder in PBH from 15/2/2021.  First purchases occurred on 16/10/2020.  There were some quite significant purchases on 15/2/2021.

Fund managers involved:

  • Bennelong Long Short Equity Fund
  • Ironbark Karara Market Neutral Fund
  • Regal Australian Long Short Equity Fund (+ Geared version)
  • Tasman Market Neutral Fund

The funds that together caused a substantial holdings are mostly long-short or absolute return / market neutral funds.

This notice contains approx 5.8m net shares that have been borrowed (shorted), mostly in Australia.

It's an interesting mix of information as I would have to assume some fund managers think the price is going to go down, through their net shorting 5.8m shares (4.9M borrowed in single transaction on 9/2/21), whilst others must be predicting a price rise through (a gut feel of the total) +1M share purchase on 15/2/2021.

I'm hoping it's all short-term noise.

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#New Partnership 10/2/21
Added 3 months ago

PointsBet and National Hockey League Announce Multi-Year Sports Betting & Marketing Partnership

10 February 2021 - Melbourne, Australia - PointsBet Holdings Limited (ASX: PBH) (the Company) today announced a multi-year strategic partnership with the National Hockey League (NHL), naming PointsBet an “Official Sports Betting Partner of the NHL”....

The agreement between PointsBet and the NHL spans across both the United States and Australia. As part of the partnership, PointsBet receives rights to use NHL marks and logos, as well as a variety of NHL sponsorship and promotional opportunities for its brand across various linear, digital, and social media assets.

Notably, the deal also provides PointsBet the ability to integrate content into live NHL game broadcasts across NHL media partners, including NBC Sports, NBC Sports Regional Networks, Altitude TV, and other potential future linear alignments.

Disc: I hold

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#4 x Announcements inc 4C
Added 4 months ago

Q2 FY21 Update

~ Group Net Win of A$44.6m up 148% on PCP

~ Record Net Win in Australia of A$49.8m, up 240% on PCP ? 13.5% online handle market share in New Jersey(1) for the quarter

~ 14.7% market share in Illinois by online handle and 3.6% by total online bet count(2)

~ 4.2% online handle market share in Indiana(3) for the quarter

~ Active Clients(3) in the US up 222% on the PCP and up 71% since 30 September 2020

~ Launched operations in Colorado in November

~ 428k bets processed on Melbourne Cup Day

Appendix 4C, Quarterly Activities Report and Trading Update ~  Attached

Q2 FY21 INVESTOR PRESENTATION & TRADING UPDATE ~

https://cdn-api.markitdigital.com/apiman-gateway/CommSec/commsec-node-api/1.0/event/document/1410-02334837-76EH14J6VNT5P436MCFPQJV9TE/pdf?access_token=GjxZwrvpQlACfwF2WiBKZkpeP605

PointsBet Appoints Shaquille O’Neal as Australian Brand Ambassador ~

https://wcsecure.weblink.com.au/pdf/PBH/02333167.pdf

PointsBet Appoints Paige Spiranac as Brand Ambassador ~

https://wcsecure.weblink.com.au/pdf/PBH/02333629.pdf

Disc: I Hold

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#ASX Announcement 21/1/21
Added 4 months ago

PointsBet Obtains Approval to Go Live with Online Sports Betting in Michigan

21 January, 2021 - Melbourne, Australia - PointsBet Holdings Limited (ASX: PBH) today announced its wholly owned subsidiary PointsBet Michigan LLC (the “Company”) has been authorised by the Michigan Gaming Control Board (MGCB) to commence online sport betting operations on Friday, 22 January 2021 at 12 noon (US EST time). Michigan will become the sixth operational US state for PointsBet, following successful launches in New Jersey, Iowa, Indiana, Illinois, and Colorado.

Michigan will also see the inaugural launch of PointsBet’s iGaming product in H2 FY21 following receipt of the necessary MGCB approvals

DISC~ I hold

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#ASX Announcements
Added 6 months ago

17 November, 2020 - Melbourne, Australia - PointsBet Holdings Limited (ASX: PBH) (the “Company”) today announced that its wholly owned subsidiary, PointsBet Colorado, LLC (“PointsBet”) has launched in the State of Colorado and has taken the first bet.

This represents the Company’s fifth online sportsbook operation in the United States. The next launch is planned for Michigan in Q3 FY21. Michigan will also see the inaugural launch of PointsBet’s iGaming product.

Prior to launching in Colorado, PointsBet inked a multi-year partnership with Kroenke Sports & Entertainment, LLC ("KSE") making them the official and exclusive partner of the Denver Nuggets of the National Basketball Association, Colorado Avalanche of the National Hockey League, Colorado Mammoth of the National Lacrosse League, and their home venue, The Ball Arena (formerly the Pepsi Centre). Likewise, Learfield IMG College, the media rights holder of University of Colorado Athletics, and PointsBet also announced a multi-year corporate sponsorship agreement that makes PointsBet a proud and exclusive partner of the Colorado Buffaloes.

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#ASX Announcements
stale
Added 7 months ago

PointsBet Appendix 4C and Quarterly Activities Report

Melbourne, Australia, 27 October 2020 –PointsBet Holdings Limited (ASX:PBH) (“PointsBet” or the “Company”) is pleased to provide its Quarterly Cash Flow Report (Appendix 4C) for the quarter ending 30 September 2020 (“Q1 FY21”)

QUARTERLY HIGHLIGHTS – Q1 FY21 PointsBet reported strong PCP growth across the following key metrics:

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#NCAA
Added 7 months ago

Contract between The University of Colorado and PointsBet is believed to be the first high-profile sports gambling deal in major college athletics.

The University of Colorado will get at least $1.625 million as part of a five-year advertising agreement with the gambling company, as well as receiving a $30 referral fee for each new gambling customer it sends to PointsBet.

That’s according to a copy of the contract between PointsBet and Buffalo Sports Properties LLC, CU’s private fundraising wing, which is listed as the primary provider in the deal. Sports Illustrated obtained a copy of the contract through a public records request.

https://www.si.com/college/2020/10/03/inside-colorado-pointsbet-deal 

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#Management
stale
Added 8 months ago

Hi guys - To add further to the Pointsbet story, please find attached a link to a podcast that Alan Kohler did with Sam Swannell (CEO) about the deal – it provides the details from the horses mouth. I’ve had to upload it to my personal drive as its located behind Eureka Report paywall.

https://1drv.ms/u/s!AlC9ZV_qvm88_FVlTdiPYC1tfL0g?e=5aZ6Un

 

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##Bull Case
stale
Added 8 months ago

only had 1k to spend in lowest week of the Crash so I picked to rebuy PBH at 1.69 what luck on that 5 years of growth in a few months.

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#Capital Raise
stale
Added 8 months ago

PBH Capital Raise Entitlement Offer

Eligible shareholders under the Entitlement Offer will be able to subscribe for 1 New Share for every 6.5 shares held (Entitlements) at 7:00pm (AEST) on Wednesday, 9 September 2020 (Record Date) at the Entitlement Offer Price of A$6.50 per New Share.  

The Entitlement Offer Price represents a 48.9% discount to the theoretical ex-entitlement price (TERP - excludes New Shares issued via the Placement) of A$12.731 based on the  A$13.69 closing price of PointsBet shares on ASX on Wednesday, 2 September 2020. 

For every 2 New Shares that are issued pursuant to the Entitlement Offer, Eligible Shareholders will also be issued one New Option at no further cost. Each New Option will be  exercisable into one New Share at an exercise price of A$13.00 at any time until expiry of  the New Options on 30 September 2022. 

The Company will apply to ASX for quotation of the New Options, which is expected to commence on completion of the Retail Entitlement Offer. 

The Entitlement Offer comprises:

• An Institutional Entitlement Offer: Eligible institutional shareholders will be entitled  to participate in the Institutional Entitlement Offer which will take place from Monday,  7 September 2020 to Tuesday, 8 September 2020. Eligible institutional shareholders  can choose to take up all, part or none of their Entitlements. Entitlements that eligible  institutional shareholders do not take up by the close of the Institutional Entitlement  Offer, and Entitlements that would otherwise have been offered to ineligible  institutional shareholders, will be sold through an institutional shortfall bookbuild on  Tuesday, 8 September 2020 and any proceeds in excess of the Entitlement Offer  Price will be paid to the relevant PointsBet shareholders (net of any withholding tax  and expenses). 

• A Retail Entitlement Offer: Eligible retail shareholders in Australia and New Zealand will be entitled to participate in the Retail Entitlement Offer at the same price as the  Institutional Entitlement Offer (A$6.50 per New Share). Eligible retail shareholders  have a number of options under the Retail Entitlement Offer: 

- elect to take up all or part of their Entitlements by the Retail Entitlement Offer closing date of 5:00pm (AEST) on Tuesday, 22 September 2020; 

- sell some or all of their Entitlements on ASX between Wednesday, 9  September 2020 and Tuesday, 15 September 2020; or 

- do nothing and let their Entitlements be offered for sale through the retail shortfall bookbuild process managed by the Underwriter, with any proceeds in  excess of the Entitlement Offer Price paid to the relevant PointsBet  shareholders (net of any withholding tax and expenses).

Entitlements that would otherwise be offered to ineligible retail shareholders will be sold through a retail shortfall bookbuild on Friday, 25 September 2020 and any proceeds in excess of the Entitlement Offer Price will be paid to the relevant PointsBet shareholders (net of any withholding tax and expenses). A Prospectus containing information in respect of the Retail Entitlement Offer and the New 
Options, together with a personalised Entitlement and Acceptance Form, will be made available to eligible retail shareholders on Friday, 11 September 2020. The Prospectus will also be lodged with ASX on Monday, 7 September 2020. Eligible retail shareholders should read the Prospectus in full before deciding whether to subscribe for New Shares and New Options, sell their Entitlements or do nothing.

Disclosure: I hold PBH 

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#Bull Case
stale
Added 9 months ago

ABSOLUTELY smashed it ... $20 here we come

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#Bear Case
stale
Added one year ago

As someone who's lived in North America most of my adult life and is a huge sports fan and even bigger fantasy sports fan I think PBH is really overhyped/misunderstood by a lot of Aussies.

They're not first movers and from what I can tell don't have a competitive advantage.  In fact I'd argue their competitors have the advantage of already having a large client base already playing fantasy sports on their sites.  Customer acquisition cost will be minimal for their competitors (fanduel etc).

I haven't delved into them extensively but for this reason I'm very bearish on them.

 

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