In a massive piece of legal sports betting news, Penn National Gaming, INC. announced multiple long-term agreements with many sports betting operators impacting 19 states.
The operators include DraftKings, The Stars Group (FoxBet), PointsBet, and theScore. Each operator on their own are massive sports betting brands within the digital media industry. Per the press release, Penn National will worth with Kambi as it’s new service provider between the 5 legal sports betting operators.
Penn National’s Senior VP of Interactive Gaming, Jon Kaplowitz is quoted:
“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.”
How Does This Impact Legal Sports Betting in the U.S.?
Penn National Gaming has a massive network of properties across 19 states. In a terrific graphic from Alfonso Straffon on twitter, he shows all of the properties (42), region, and sportsbook skins.
Take a look at the image below. This was truly a massive deal that has reshaped the legal sports betting market:
Each “skin” is a partner, where they will have the ability to own, operate, and market real-money online poker, casino games, and sports betting based on state laws, licenses, etc.
That is why you see states that may not currently have sports betting laws, but the deal is in place based on future availability.
Details on this ground-breaking partnership:
DraftKings Sportsbook – Can now operate in: Florida, Missouri, Ohio, Pennsylvania, Texas, West Virginia, and Indiana. It is a 10-year agreement with a possible 10-year extension based on revenue share.
theScore – Can now operate in: Mississippi, Louisiana, Indiana, Iowa, Missouri, Ohio, Texas, Kansas, Maine, Massachusetts, Michigan. It is a 20-year agreement based on revenue share and theScore gives up 4.7% equity with potential increases.
The Stars Group (Fox Bet) – Can now operate in: Illinois, Indiana, Ohio, Texas, Kansas, New Mexico, Maine, Massachusetts, Michigan. It is a 20-year deal based on a $12.5M upfront payment, with Texas access fee of $5M with conditions, and revenue share.
PointsBet – Can now operate in: Louisiana, Missouri, Ohio, Indiana, West Virginia. It is a 20-year deal based on revenue share, and PointsBet gives up 5.3% equity, an access fee for Ohio, and over 10.3M options.
The largest outcome of this deal in the short term is undoubtedly DraftKings being able to enter the Pennsylvania Sports Betting market right away, as it has partnered with “The Meadows”, a Penn National Gaming casino. DraftKings PA is expected to take online sports betting in the coming weeks before football season.
Penn National Gaming is now greatly positioned in the legal sports betting industry, and this gigantic partnership allows them to use funds to further their sports-betting offerings, and continue to grow as the first iGaming company in Pennsylvania. This is a big jump, as Penn National Gaming was first focused on casinos with machines, hotel rooms, and table games.
Make no mistake about it, this is a massive deal that will help determine the landscape of legal sports betting in many states.