Penn National Gaming announced Wednesday that it had entered into multi-year agreements with some of the biggest sports betting operators in the world. DraftKings, PointsBet, theScore and The Stars Group have all entered into agreements with Penn National for online sports betting and iGaming market access across the company’s portfolio.
According to Business Wire, the deal is as such:
In the partnerships, each partner will have the option to own, operate, and brand real-money online sports betting, poker, and casino offerings in each of the following states.
DraftKings will have access to Florida, Indiana, Missouri, Ohio, Pennsylvania, Texas, and West Virginia. The length of the partnership is for 10 years and is subject to a 10-year extension. As for payment, revenue share to Penn National Gaming will be based on a percentage of DraftKings’ net gaming revenue.
As part of this deal, DraftKings will now finally have access to Pennsylvania, and that is perhaps the biggest part of this deal, at least at this point. It appears that DraftKings will be operating out of The Meadows Racetrack and Casino located in Washington, Pa. However, Kambi Technology will operate all of Penn National’s retail sportsbook operations.
PointsBet will gain access to Indiana, Louisiana, Missouri, Ohio, and West Virginia. The terms of this agreement are for 20 years, and revenue share to Penn National will also be based on net gaming revenue for PointsBet.
TheScore will be granted access to a number of states, which include Iowa, Kansas, Louisiana, Maine, Massachusetts, Michigan, Mississippi, Missouri, Ohio, and Texas. This partnership will be for 20 years and will include a revenue share to Penn National Gaming based on TheScore’s net gaming revenue. Penn National will also take a 4.7 percent equity stake in theScore with the possibility to increase its stake down the road.
The Stars Group will have access to Illinois, Indiana, Kansas, New Mexico, Maine, Massachusetts, Michigan, Ohio, and Texas. The deal is for 20 years and includes an upfront payment of $12.5 million, with an extra $5 million for Texas, based on certain conditions. Revenue share will also go to Penn National Gaming based on The Stars Group’s net revenue.
This deal will immediately make Penn National one of the biggest competitors in the country. They have expanded their sportsbook, online casino gaming, and online poker network to some of the biggest names in their respective industries. The Meadows Racetrack and Casino has already begun steps to build its sportsbook by closing down its biggest in-house bar “Vibe,” which is located in the center of the casino floor.
A lot of partnerships have been made in the sports betting world since the PASPA overturn back in May of 2018. This deal, however, may be one of the biggest moves we have seen yet among the widest portfolio that covers all three of the country’s most lucrative online gaming platforms.