Penn National Gaming Inks Five New Sports Betting Deals
Last Wednesday, Penn National Gaming issued a statement announcing that it had inked four new market-access agreements with some of the biggest sports betting names in the United States. The multi-year agreements are set to have a monumental impact on the legalized gambling market in the country especially considering how fast the sports betting industry has been growing since the US Supreme Court abolished PASPA and lifted the federal ban on the activity.
DraftKings, PointsBet, theScore and The Stars Group, Penn National Gaming’s new partners are going to be managed by Penn Interactive Ventures, LLC (PIV) which is a wholly-owned subsidiary of Penn National Gaming. As per the terms of the agreement, Penn Nation will give these new partners access to sports betting markets across the United States and in exchange, it will be given fees, equity as well as a share of betting revenues.
“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,” Jon Kaplowitz, Penn National’s senior vice president of interactive gaming said.
Powered by Kambi
In addition to the four sports betting operators mentioned earlier, Penn National Gaming also announced that it has entered into a partnership deal with Kambi. The United Kingdom-based gambling service provider will be powering Penn National’s in-house sportsbooks across its entire portfolio including the ones created by the new partnerships. This is a pretty huge number since Penn currently operates over 40 gaming properties across a total of 19 states. Kambi’s presence will mostly be felt in 8 states where sports betting has been legalized and is regulated.
This is a great opportunity for the Kambi Group Plc as the company has been striving to extend its footprint beyond the United Kingdom where the sports betting environment has been tightening up in recent times.
What This Means for Sports Betting in the United States
Obviously, players it the country will now have more access to sports betting platforms than ever before. However, someone will have to feel a pinch and, in this case, it will be William Hill which is currently the leading sports betting operator in the US in terms of gambling revenue. The move to partners with Penn National Gaming will give smaller operators like PointsBet and DraftKings to counterbalance the growing dominance of William Hill in the market.
Furthermore, the partnerships will be a great way for some of the gaming operators to gain entry into some of the states. For instance, through the partnership, DraftKings will be able to operate both retail and online sports betting in Pennsylvania. Expansion to the other 18 states is also part of the agreement.