Pointsbet signs wagering deal in Michigan
Australian sports betting operator Pointsbet has signed a long-term wagering agreement with Michigan’s Lac Vieux Desert Band of Lake Superior Chippewa Indians, that will enable the company to enter the state’s nascent digital gambling market.
Casino News Daily reports that under the agreement with the federally recognised tribe’s Lac Vieux Desert Public Enterprise and Finance Commission, Pointsbet will operate an online and mobile sportsbook on the territory of Michigan, contingent upon the issuance of the necessary licenses from the state’s competent regulatory bodies.
Michigan Governor Gretchen Whitmer signed on December 20, 2019 a bill legalising digital sports betting and online gambling.
Governor Whitmer’s signature paved the way for the establishment of the state’s wagering market, but it is yet to be seen when exactly the first legal sports betting operations will go live.
The measure did not specifically legalise retail betting, but lawmakers said they would be able to authorise wagering at brick and mortar sportsbooks this year, without any issue.
Michigan will be the latest state that Pointsbet will be able to enter through a strategic partnership.
The company has clinched deals with casino and racetrack operator Penn National Gaming, as well as with Tioga Downs Casino in New York and the Meadowlands Racetrack in New Jersey to expand its presence across regulated sports betting markets within the United States.
20-year deal signed
Pointsbet has signed a 20-year agreement with LVD with the option for a five-year extension, unless either party provides written intention to cancel the deal.
The two companies will offer an online and mobile Pointsbet-branded sportsbook through LVD’s online licenses.
The agreement also includes online casino gambling.
As mentioned above, the recently signed legislation authorised that activity as well.
Upon termination or expiry of the recently inked deal, Pointsbet and LVD have agreed that the sports betting operator will retain the right to use client data it has directly acquired via the digital channels through which it will be providing sports betting and casino gaming products.
It also became known that Pointsbet and LVD are in negotiations relating to the operation of a retail sportsbook at Northern Waters Casino Resort in Watersmeet, Michigan. The property is owned and operated by the Lac Vieux Desert Band of Lake Superior Chippewa.
Commenting on further expanding in the US, Pointsbet’s chief executive officer Sam Swanell said that they are pleased to have reached an online sports betting and online casino agreement with “such a forward-thinking tribe” and that they look forward to “many years of great success working together in Michigan.”
Pointsbet shares rose seven per cent on news about the company’s new US-focused sports betting partnership.
Despite its predominantly American expansion focus, the sports betting operator hails from Australia. It began trading on the Australian Securities Exchange in the summer of 2019.
Pointsbet opens West Coast office in Colorado
Australian company Pointsbet announced in November that it planned to open its second US-based headquarters in Denver, before the state legalised sports betting.
Its venture into Colorado, the base for its West Coast operations opened last month, with a recent vote in the state approving online and bricks and mortar sports betting in its November 5 election.
Legal sports wagering in the state could become a reality as soon as May 2020.
The company was also ahead of the game when it decided to advance a multi-year partnership with Double Eagle Hotel and Casino, one of Colorado’s leading casino and hotel destinations.
The company is now positioned to hit the ground running to launch retail and mobile sportsbook operations in Colorado.
Pointsbet and the Double Eagle Hotel and Casino are set to build a multi-faceted sports entertainment venue in Cripple Creek, Colorado and their early partnership should only bolster the two companies’ ability to begin working on satisfying whatever requirements come down the line from state regulators as the state moves toward implementation.
An office in Denver didn’t require the state’s voters to approve sports betting in the state, with the city home to a robust software engineering community.
Colorado has an affluent and educated population that should help the US sports betting market continue to grow.
After all, more legal bets were placed at US sportsbooks than ever before in September, and that number should only continue to grow every year as more states legalise sports betting.
While the state likely won’t challenge Nevada or New Jersey for US gross handle supremacy anytime soon, it could still ultimately become one of the biggest sports betting markets on a per capita basis.