PointsBet (ASX:PBH) to launch ADW horse race betting service in US

• PointsBet (PBH) signs a five-year agreement with 1/ST TECHNOLOGY to offer advance-deposit wagering (ADW) horse racing betting in the US
• Under the partnership, 1/ST will provide horse racing betting products and content solutions to be fully integrated within the PointsBet sportsbook app
• In return, PointsBet will pay 1/ST an undisclosed portion of ADW revenue; the deal comes with no upfront payments or minimum guarantees
• PointsBet will operate the ADW solution and says it plans to launch the product in early 2023, meaning the company will have an online betting presence in over 30 US states
• Shares in PointsBet are up 3.92 per cent and trading at $2.12 as of 11:30 am AEDT

PointsBet (PBH) has signed a five-year agreement with 1/ST TECHNOLOGY to deliver advance-deposit wagering (ADW) horse racing betting in the US.

1ST is a subsidiary of Premier Turf Club (BetPTC) and holds some of the world’s most recognisable brands in the betting industry, according to PointsBet.

Under the partnership, 1/ST will provide horse racing betting products and content solutions to be fully integrated within the PointsBet sportsbook app.

Further, the partnership will provide a PointsBet-branded stand-alone ADW offering in eligible states outside those in which the company currently offers sports betting.

In return, PointsBet will pay 1/ST an undisclosed portion of ADW revenue; the deal comes with no minimum guarantees or upfront payments.

PointsBet Group CEO Sam Swanell said the agreement marked a “pivotal moment” in the evolution of the company’s US expansion strategy.

“Horse racing has a unique role to play alongside sports betting in the US, and despite already generating over US$6.5 billion (A$9.98 billion) per annum in industry online handle, we consider it an attractive category on the cusp of further expansion on the back of the ongoing shift from brick and mortar to digital,” Mr Swanell said.

“With PointsBet’s mature market Australian racing expertise, and now a strategic partner in 1/ST that provides us with a market leading portfolio of racing products and services, we can introduce new and existing customers to a dynamic and interactive PointsBet branded horse betting experience.”

Utilising BetPTC’s licences, PointsBet will own and operate the ADW business, and the
ownership of customer data will remain with PointsBet.

The company said it planned to launch the ADW solution in early 2023, after which it would have an online betting presence in over 30 US states.

Shares in PointsBet were up 3.92 per cent and trading at $2.12 as of 11:30 am AEDT.