The PointsBet Holdings Ltd (ASX: PBH) share price will be on watch on Monday following the release of a positive announcement this morning.
What did PointsBet announce?
This morning the online betting company revealed that it has entered into an exclusive 20-year agreement with Lac Vieux Desert Public Enterprise and Finance Commission (LVD).
The release explains that LVD is an arm and instrumentality of and organised under the laws of the Lac Vieux Desert Band of Lake Superior Chippewa Indians. This is a sovereign federally recognised Indian tribe.
The agreement will see PointsBet provide online and mobile sports wagering and gaming (casino) in the State of Michigan, contingent upon obtaining the necessary regulatory licenses.
This follows the signing of legislation allowing both sports betting and online gaming in the State by Michigan Gov. Gretchen Whitmer on December 20.
Under the terms of the agreement, PointsBet will pay to LVD online sportsbook and online gaming market access fees as well as a portion of the Net Gaming Revenues derived from the online sportsbook and online gaming operations.
PointsBet will be responsible for the licensing and regulatory costs in connection with launching and operating the the services.
The two parties will now work in tandem to offer online and mobile sports wagering and online gaming (casino) services through LVD’s online licenses.
PointsBet CEO Sam Swanell said: “PointsBet is pleased to have reached 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”.
This sentiment was echoed by LVD’s chairman, James Williams, Jr. He said: “The Tribe is excited to join forces with PointsBet to further the Tribe’s economic development efforts and expand gaming online as allowable under Michigan and Federal law.”
“We are confident that this new opportunity will strengthen the Tribe’s self-sufficiency and self-determination efforts and provide much needed revenue to continue to expand and enhance tribal governmental services as well as provide jobs for the LVD community,” he added.
Management also revealed that the two parties are in exclusive negotiations regarding the operation of retail sportsbook operations at the Northern Waters Casino Resort to complement the online offerings.
The post PointsBet share price on watch after announcing new US agreement appeared first on Motley Fool Australia.
Our Motley Fool experts have just released a fantastic report, detailing 5 dirt cheap shares that you can buy today.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield...
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
- Man bets $221,666 on one ASX stock
- Top analysts name their top 3 ASX blue chip shares for 2019
- 3 quality dividend shares to boost your income
- NEW: Free report names top 3 ASX dividend shares to buy for 2019
- 5 Stocks for Potentially Building Wealth After 50
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020