- While Penn National has agreed to partnerships with multiple online sports betting providers, Kambi will be the company’s exclusive sportsbook partner.
- Penn National was the first iGaming operator in the state of Pennsylvania.
- Each deal with Penn National is contingent up the state’s laws and regulations when it comes to iGaming and Online sports betting.
WYOMISSING, Pa. – In an announcement made by Penn National Gaming, Inc. on Wednesday, the company has agreed to partner with five different iGaming and online sportsbook operators.
The press release showed varying agreements with DraftKings, PointsBet, theScore, and the Stars Group.
“We’re pleased to be providing the top names in sports betting, iGaming and poker access to our Company’s non-primary licenses to conduct these operations in exchange for a combination of upfront cash and equity, one-time market access fees, and ongoing revenue sharing,” said Jon Kaplowitz, Senior Vice President of Interactive Gaming for Penn National.
The terms of each agreement will give each partner a varying level of access into certain states that Penn National operates in.
In certain states, DraftKings will claim the first available sports betting skin, while in other states Points bet might receive the first available skin. In either case, those companies will have the option to own, operate and brand real-money online sports betting, casino games, and online poker.
Each agreement is also contingent on the state’s law, regulatory approval, and license availability.
Each state has a different take on sports betting laws. States such as New Jersey have given their casinos multiple skins to be able to sign an online sports betting partner, while others such as Iowa have only allowed their casinos to sign with one online operator.
This may force certain partners to have to form other relationships in certain states, but Penn National still stands to benefit with each deal. The amount of US states with legal sports betting has grown substantially in 2019 and has shown no steps of slowing down.
“Sports Betting represents an exciting new growth opportunity for Penn National,” said Kaplowitz.
“When coupled with our industry-leading regional casino footprint and database of over five million active customers, the company is uniquely positioned to capitalize on the rapidly expanding sports betting and iGaming markets in a way that maximizes value to our shareholders.”
Penn National also signed a deal with Kambi Group to be their exclusive sportsbook partner across multiple states and power their retail and online sports betting operations.
What Are The Terms For Each Deal?
DraftKings stands to gain first market access in states with a large sports fanbase, but have not yet legalized sports betting. Draftkings will have access to Penn Nationals first skin in Florida, Texas, Pennsylvania, Ohio, and Missouri. They will also have a second skin in West Virginia and third skin in Indiana.
The DraftKings deal will last 10 years and is subject to a ten-year extension. As far as what they have to pay, DraftKings will share sports betting revenue with Penn National based on their net gaming revenue.
The PointBet Deal will be in place for longer. The terms of PointsBet’s deal will last for 20 years and will require the company to give up 5.8% equity of the company to Penn National.
PointsBet will have the first skin in Louisiana, Missouri, and Ohio. However, the company will have to pay a $2.5 million access fee for Ohio and share sports betting revenue. PointsBet will also be granted a second skin in Indiana and a third skin in West Virginia.
When it comes to theScore, the deal is very similar to the one with PointsBet. The partnership will last for 20 years, it will require theScore to give up 4.7%, and a certain amount of revenue will have to be shared.
As far as skin access, theScore will have the first skin in Louisiana and Mississippi. They will be granted a second skin in Indiana Iowa, Missouri, Ohio, and Texas. They will also have a third skin in Kansas, Maine, Massachusetts, and Michigan.
The Stars Group will have to pay the most upfront of any of the four partners. Penn National signed The Stars Group for 20 years and will receive an upfront payment of $12.5 million. There will also be an additional fee of $5 million for access to Texas and revenue will be shared with Penn National.
The Stars Group will have the first skin in Illinois, Indiana, Ohio, and Texas. They will have a second skin in Kansas, New Mexico, Maine, Massachusetts, and Michigan.
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News tags: DraftKings | Florida | Indiana | Iowa | Jon Kaplowitz | Kambi | Kansas | Louisiana | Maine | Massachusetts | Michigan | Missouri | New Jersey | New Mexico | Ohio | Penn National Gaming | Pennsylvania | PointsBet | Texas | The Stars Group | theScore | West Virginia
– In his career, Hasan has worked both local and state government positions—including the Attorney General’s Office in Florida. On top of being familiar with the legislative process, he has also been researching and writing on the legality of sports betting across the US. Outside of work you’ll most likely find him producing or playing music, playing sports, or working on creative writing projects. You’ll also catch him at Doak Campbell Stadium cheering on the Noles.
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