Pointsbet Shares Continue to Drop in Value

Ben H / 6 January 2022

Pointsbet’s share price value continues to go down in the new year too. The sports betting operator’s shares sky-rocketed early last year and went over $17 per share. However, as the US wagering market got more competitive and the excitement died down a little, Pointsbet’s share price value started to go down, decreasing by 40% on January 5.

Pointsbet’s shares dropped by more than 4% in the past month, and by over 5% in the last week alone. On January 5, the company’s shares were at $6.80, down 5.16% compared to the day before. The drop in value surprised some people because there wasn’t any Pointsbet news that would influence the price.

Uneven Trading Influencing the Price

So why are Pointsbet’s shares dropping in 2022? Well, it seems that Pointsbet is losing value not because of things happening in the company but because general trading in the industry is off to a poor start this year.

Only a few companies are seeing their share prices increase, and that is in line with the fact that the S&P/ASX Consumer Discretionary Index dropped one per cent on January 5 and the S&P/ASX All Technology Index has decreased by more than two per cent.

Pointsbet was not the only Australian betting operator to be feeling the effects of choppy trading activity. Tabcorp Holding Ltd‘s share price value was also down one per cent.

An Equity Deal with Penn Interactive

Pointsbet recently announced that it will issue 509,128 ordinary shares to Penn Interactive Ventures, LLC. Penn Interactive is a subsidiary to Penn National Gaming and got the shares at a price of $6.884 per share. That means that Pointsbet made a good deal with its US investor, as that price was 1.23 per cent higher than the price at which Pointsbet is trading now.

According to reports, Penn asked for additional equity instead of cash consideration. Pointsbet issued the shares under Part 6D.2 of the 2001 Corporations Act, meaning it didn’t have to disclose any information to investors.

Getting Ready to Start Operating in Ohio

Pointsbet and Penn agreed on the deal after it became official that sports betting is legal in the state of Ohio. Governor Mike DeWine legalized sports betting on 23 December 2021, and Ohio residents are going to be able to place their first legal sports bets starting from January 1, 2023.

The state will now start drawing up the sports betting rules and regulations. Bookies will not operate in Ohio until the turn of the year.

With sports betting getting the green light in Ohio, other gaming services will likely follow too. That’s probably the reason why Pointsbet and its US betting partner decided to consolidate their position before they start offering their services to Ohio residents.

Read more betting news here.

Looking for a new betting site? Check out our reviews of the Best betting sites in Australia.

Take the Quiz to find out which betting site is the best for you.

The verdant surroundings and rustic ambience of Warwick Farm lend a distinct racing charm. While racing takes held on 23 Wednesday afternoons, the Australia Day race meeting in January is the main event. The racecourse is at the centre of a community that ...

The Warrnambool Racecourse is located in the suburb of Warrnambool, in a picturesque valley with great natural viewing platforms. Warrnambool Racecourse is around 260 kilometres from Melbourne’s CBD.

Terang Racing Club, sometimes known as the Flemington of the Bush, has a long and rich history of racing in the southwest. The expansive course was designed by the same person who created the Flemington track. The facilities include a well-kept, vast grandstand with a...

Swan Hill Racecourse is located in the centre of the Murray Region, 340 kilometres from Melbourne.Swan Hill Racecourse June racing festival has earned a name for itself as the best country festival in the state, if not the entire nation. The advice is to book as soon as ...

Sale Racecourse has first-rate facilities, including a wholly climate-controlled Public Bar and Grandstand Bar open on race days.The take pleasure in being a community club that includes our surrounding townships. Because of their family-friendly ambience and specific ...

Ben H
Ben Harris is the Communications Manager for KRUZEY, an AFL expert, and writer. He has one daughter that he loves dearly and four children's books... [Read full bio]

Comments are closed.

Think. Is this a bet you really want to place? Set a deposit limit.

For free and confidential support call 1800 858 858 or visit gamblinghelponline.org.au