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The Aussie startup betting on US sport wagering pay day
10th November, 10:12Australian wagering startup PointsBet predicts its path to profitability, and the likelihood it will need to tap investors for more capital, is tied to how quickly sports betting is legalised across the United States.
The company has become a darling of the ASX small cap market, with its shares jumping from $2 at its June listing to $3.94 on Friday, as investors have piled into the company to capitalise on the nascent, but potentially enormous, US sports betting market.
A US Supreme Court ruling in 2018 opened the door for individual states to legalise betting on sport, which is happening gradually. PointsBet also has a relatively small operation in Australia.
Chief executive Sam Swanell said the company was holding its own in America against deep-pocketed global gambling giants who were also rushing to get a foothold.