PointsBet’s (ASX: PBH) has recently been approved in the state of Indiana for sports betting. This positive development is key to their aggressive expansion into the US market with the company currently operating in Iowa and New Jersey. The company has a 6.7% market share in New Jersey which saw a large revenue boost from the latest Superbowl LIV between Kansas City Chiefs and San Francisco 49ers. The event recorded 102 million total views which were higher compared to last year's Superbowl. With the latest approval in Indiana, Pointsbet is looking to benefit from one of the largest upcoming college basketball games in the US.
PointsBet looking to benefit from the latest Superbowl LIV with Kansas City Chiefs Winning.
However, not all news is positive for PointsBet as the share price is currently down 6% surrounding global COVID-19 fears, despite positive news in its latest approval in Indiana. The coronavirus case continues to cause sell-off in the ASX index with each day new active cases rising. Australia has recently put a temporary ban on South Korea in hopes to slow down the active coronavirus cases.
Some analysts have suggested that the current share price of PointsBet doesn’t reflect the fundamentals of the company and the strong management team that controls the company. The company is not focusing on profitability and is priced on low forward revenue multiples because of their low margins.
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