Business
Penn National Gaming Announces Strategic Partnerships With Leading Sports Book Operators for Online Sports Betting and iGaming Market Access to the Nation’s Largest Regional Gaming Portfolio
Penn National will Retain Control of its Primary Sports Betting and iGaming Operations, Naming Kambi as its National Service Provider WYOMISSING,
About this update from Penn Entertainment, Inc.
[{"type":"text","content":"\nPenn National will Retain Control of its Primary Sports Betting and iGaming Operations, Naming Kambi as its National Service Provider\n\n WYOMISSING, Pa.--(BUSINESS WIRE)--\nPenn National Gaming, Inc. (PENN: Nasdaq) (“Penn National” or the “Company”) announced today that it has entered into multi-year agreements with leading sports betting operators DraftKings, PointsBet, theScore and The Stars Group for online sports betting and iGaming market access across the Company’s portfolio. Penn Interactive Ventures, LLC (“PIV”), a wholly owned subsidiary of the Company, will manage the relationships, in addition to operating the Company’s primary sports betting and iGaming initiatives through a new partnership with leading service provider Kambi.\n\n\nAccording to Jon Kaplowitz, Penn National’s Sr. Vice President of Interactive Gaming: “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.”\n\n\nUnder the terms of the agreements, each “skin” partner will have the option to own, operate, and brand real-money online sports betting, poker, and casino offerings in each of the states outlined below, pursuant to a first, second or third skin, as applicable, and subject to license availability, state law, and regulatory approvals.\n\n\n\nDraftKings: \n\n\nStates Covered: Florida (1st skin), Indiana (3rd skin), Missouri (1st skin), Ohio (1st skin), Pennsylvania (1st skin), Texas (1st skin) and West Virginia (2nd skin)\n\n\nTerm of agreement: 10 years, subject to a ten year extension\n\n\nKey economic terms: Revenue share to Penn National based on net gaming revenue\n\n\n\n\n\n\nPointsBet:\n\n\nStates Covered: Indiana (2nd Skin), Louisiana (1st Skin), Missouri (1st Skin), Ohio (1st Skin) and West Virginia (3rd Skin)\n\n\nTerm of agreement: 20 years\n\n\nKey economic terms: Revenue share to Penn National based on net gaming revenue\n\n\nEquity Position: PIV will take a strategic equity stake of 5.28% in PointsBet, with an additional $2.5 million access fee for Ohio, based on certain conditions, payable in cash or equity at Penn National’s option. In addition, PIV will receive 10,372,549 options, exercisable for two years, to acquire...