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PointsBet (ASX:PBH) to provide online sports wagering and gaming in Michigan

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ASX:PBH      MCAP $157.8M
06 January 2020 13:45 (AEST)

PointsBet Michigan, subsidiary of PointsBet Holdings (PBH), has entered an agreement with Lac Vieux Desert Public Enterprise and Finance Commission.

This agreement will provide online and mobile sports wagering and gaming in the State of Michigan, however, necessary regulatory licences must first be obtained.

On December 20 2019, Michigan Governor Gretchen Whitmer signed legislation allowing both sports betting and online gaming in the State.

PointsBet and Lac Vieux Desert (LVD) will now work together to offer online and mobile sports wagering and online gaming services through LVD’s online licences.

“PointsBet is pleased to have reached an agreement for both online sportsbook and online casino operations with such a forward-thinking Tribe, and we look forward to many years of great success working together in Michigan,” PointsBet CEO Sam Swanell said.

This new agreement involves PointsBet and LVD partnering to launch digital sports wagering via PointsBet’s app and website platforms pending final regulations.

The initial term of this agreement is 20 years and once passed will automatically renew for an additional five-year term unless either company provides written notice of intention not to renew.

Upon termination or expiry of the agreement, PointsBet and LVD have negotiated rights related to using client data acquired during the term with PointsBet retaining the right to use client data it has directly acquired via the online channels.

PointsBet and LVD are also in exclusive negotiations regarding the operation of retail sportsbook operations at the Northern Waters Casino Resort to complement the online offerings.

PointsBet’s share price is currently up 6.26 per cent with shares trading for $5.26 apiece at 12:38 pm AEDT.

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