Regional casino operator Penn National Gaming recently announced major deals with five online sports and gambling operators. The deals will give Penn access to sports betting and online gambling markets in regions where such activities are legal. Among the brands PNG is collaborating with are DraftKings, PointsBet, theScore, The Stars Group and Kambi. These new partnerships will be overseen by Penn Interactive Ventures (PIV). Penn Interactive Ventures (PIV) is a subsidiary of PNG and handles the online gambling part of the casino operator’s business.
What is entailed in this potential mega-million deal with these five brands? Find out how the brand plans to expand within and outside the borders of USA.
Details of Penn’s Deals with Each Brand
Each of the aforementioned brands will be able to function as skins in regions where PNG is already licenced to operate. Essentially, they will operate as a branch of Penn’s great gambling business “tree”. With DraftKings Penn Interactive will have a revenue sharing arrangement for 10 years. Canadian digital sports media brand the Score, Stars Group and PointsBet will also have a revenue sharing deal with PNG for 20 years.
DraftKings who also branched out from fantasy sports betting to sports betting entered a revenue sharing deal fopr10 years with PNG. They will operate jointly in the PNG’s casino regions in Florida, Pennsylvania, Missouri, West Virginia, Ohio, and Texas.
In PNG’s deal with Canadian sports digital media brand -theScore, PIV will have a 4.7% stake in theScore. Their 20-year revenue sharing will cover from PNG’S operations in Mississippi, Kansas, Louisiana, Missouri Indiana, Massachusetts, Michigan, Iowa, Maine, Ohio and Texas.
The Stars Group is another Canadian online gambling brand which is part of PNG’s bold move to expand. PNG gets USD 12.5 million and an additional $5 million plus another conditional bonus depending on the performance of the partnership in Texas by end of 2023.
PointsBet betting operator from down under will award 5.28% equity stake to PIV in the deal reached. PNG will get about US$13 million in access fees and shares. PNG’s deal with B2B provider Kambi includes the launch of an online sportsbooks in 2020 in Iowa and Indiana.
The Next Step for Penn National Gaming
The deal inked with Kambi spells the end of PNG’s partnership with William Hill. Apparently Kambi’s offer to PNG was irresistible. There will be some challenges in states which only allow one skin and where PNG already has “skins” operating as a branch of their brand.
We will keep you posted on this story and more casino gambling news in USA. Look out for our regular blogs here at Casino US.