As one of last year’s top performing IPOs PointsBet Holdings (ASX: PBH) has shouldered into the Kansas sports betting market.
The company’s local subsidiary has secured an exclusive primary skin agreement with Kansas Crossing Casino.
Under the agreement, PointsBet will partner with Kansas Crossing to launch retail sports betting at is Kansas Crossing Casino and Hotel.
PointsBet will also provide Kansas Crossing with digital sports wagering via its mobile app and website platforms.
The deal is expected to run until at least March 2032. Upon renewal of the management contract, the agreement will automatically renew for further seven year terms, unless terminated under the contract terms.
PointsBet will pay Kansas Crossing a market access fee as well as a portion of the net gaming revenues from the sportsbook operations.
Also under the agreement, PointsBet will allocate an agreed amount to create a retail sportsbook at Kansas Crossing’s casino. PointsBet will also pick up the licencing and regulatory costs associated with launching its services.
According to PointsBet, Kansas Crossing’s casino is in the region’s Four States area, which is a short distance from the borders of Oklahoma, Missouri and Arkansas.
“PointsBet is pleased to have reached agreement for both retail and online sportsbook operations with Kansas Crossing,” PointsBet chief executive officer Sam Swanell said.
“The team behind Kansas Crossing is acclaimed as one of the best operators in US gaming, and we look forward to many years of great success working together in Kansas,” he added.
PointsBet is one of the best performing IPOs on the ASX last year.
The company comes in at sixth in the top 10 list after generating a 140% return since listing.
PointsBet debuted on the ASX in June after raising $75 million and the company’s stock has been rising since.
By the end of 2019, PointsBet had gained 140% since listing and had a market capitalisation of $624 million.
The growth hasn’t stopped as January advances, with the company revealing a 169% increase in turnover to $297.3 million for the December 2019 quarter, compared to the previous corresponding period.
However cash outflows for the quarter were $33.8 million, largely due to advertising and costs associated with growing the business in the US.
In early morning trade, PointsBet’s share price rising more than 4% to $6.09 – boosting its market cap to $793.43 million.