PointsBet USA and Penn National Gaming enter new deal for USA expansion
PointsBet USA has entered a brand new deal with Penn National Gaming for an improved online gaming services structure in order to acquire access for iGaming and sports betting in the states of Mississippi and Pennsylvania.
The period of time of this deal for every extra state is twenty years exactly starting from the day that the PointsBet services are initially provided to the clients in said states or areas. The implementation of this agreement was initially dated back to the 31st of July, 2019. It is currently liable to warranting ratification in Mississippi and licencing in the two states noted above.
Jay Snowden, CEO and president at PNG, mentioned:
“With the addition of Pennsylvania and Mississippi, we are pleased to expand our market access partnership with PointsBet to seven States. We have a great working relationship with the PointsBet team and are thrilled with the performance of our equity stake in the company since inking the original agreement. While we continue to value our equity stake in the company, the release from the disposal restrictions will provide flexibility as we assess our future capital management plans.”
Additionally, PointsBet will be the one who will secure the licencing costs connected to the launch and the operations of these services, such as those related to the operator acquiring the B2C licence which is mandatory in order to operate their services in these states.
Aside from that, PointsBet will be paying PNG a part of the revenues from net gaming which are obtained in both aforementioned states.
PointsBet Group CEO, Sam Swanell, said:
“We are very excited about adding another two guaranteed online market access points to our portfolio in Pennsylvania and Mississippi. A mature, total addressable sports betting and igaming market in Pennsylvania is estimated to be over $1.75bn per annum. Further, Pennsylvania is home to Philadelphia, the fourth largest media market in the United States, inclusive of southern New Jersey and a regional pillar of the Comcast-NBC Universal asset portfolio. NBC Sports Philadelphia owns the in-game broadcast rights to the Phillies, 76ers, and Flyers covering over 290 live events per year across 4.1 million households.”