- Penn National enters multiple exclusive partnerships
- The company will use revenue-sharing agreements
- Penn National is acquiring shares in some of the companies it has signed up with
Penn National has signed partnerships with multiple betting and gaming companies, including PointsBet, theScore, The Stars Group, DraftKings, and Kambi.
Penn National Adds Multiple Big Gaming and Betting Brands
Penn National has signed up a number of partnership agreements with prominent suppliers and brands of various sports betting, poker and gambling products. The US-based casino and racetrack company will now work with a number of great market leaders, including:
- The Stars Group
This marks one of the largest series of deals with key companies in the targeted industries to date, both in the U.S. and overseas. Penn will focus on sports betting through Penn Interactive Ventures, a subsidiary that has been created to help the company manage its sports betting business and leverage Kambi’s platform successfully.
Kambi’s Endorses Penn National
Penn will trust Kambi to bring stellar solutions to its land-based properties across multiple U.S. states where lawmakers have given their approval for sports betting. Commenting on the deal, Kambi CEO Kristian Nylén expressed his appreciation for partnering with “tier one” operator as Penn National, and share in their passion for sports wagering.
In Penn National, we have found an ideal partner – one that is not only passionate about providing high quality sports wagering experiences to its customers, but a company that adheres to the highest level of ethical business standards.
Kambi will now replace William Hill, which was given a trial run, but nothing much came after it, with Kambi taking precedence as the latest deal reveals.
Covering the Costs of Rapid Expansion
Penn’s SVP of Interactive Gaming Jon Kaplowitz who attested to the company’s readiness to partner with established market leaders, had this to say:
“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.”
By teaming up with the listed brands, Penn will be able to expand its current offer without stressing its budget. Long-term revenue sharing arrangements have been put in place, Kaplowitz explained.
DraftKings Gives Penn Reasons to be Excited
Kaplowitz acknowledged the leadership position of DraftKings, the daily fantasy sportsbook which has been expanding rapidly throughout the United States with the legalization of the industry in May, 2018.
We believe that DraftKings is well positioned to continue its success in the years to come,” he said. DraftKings’ Penn National deal is particularly important for the operator, as main competitor FanDuel is already in the state whereas DraftKings is only now entering.
PointsBet, a new entrant in the U.S. sports betting market is also a strong beneficiary in the deal, as the company will now operate a 20-year revenue-sharing program in four states, including:
- Ohio (1)
- Indiana (2)
- West Virginia (3)
- Missouri (1)
- Louisiana (1)
A stock reshuffle will grant Penn 10,372,549 shares in PointsBet as part of the agreement. PIV will claim 5.28% of the total equity, plus a $2.5 million fee in Ohio.
Scoring Big Time
Meanwhile, theScore, another established face in the betting landscape will run several new skins in:
- Kansas (3)
- Michigan (3)
- Louisiana (1)
- Maine (3)
- Massachusetts (3)
- Mississippi (1)
- Iowa (2)
- Indiana (2)
- Missouri (2)
- Ohio (2)
- Texas (2)
theScore founder and CEO John Levy expressed his own excitement with the newly-struck partnership:
“We are thrilled that Penn National believes in, and has invested in, our vision of an integrated approach to media and sports betting and we can’t wait to unveil the best-in-class mobile betting experience that we’ve been building for sports fans.”
theScore’s deal amounts to part of the revenue and 4.7% of the equity.
Shooting for The Stars
On top of all other developments, The Stars Group has secured a 20-year partnership with Penn National. The deal will target several states with 1 or 2 venues per state, including: Texas (1), Ohio (1), Kansas (2), Maine (2), Illinois (1), Indiana (1), New Mexico (2), Massachusetts (2).
The arrangement will grant revenue share of $12.5 million, plus additional $5 million in Texas. Earlier this year, The Stars Group struck one of the most iconic partnerships to date between a broadcasting company, Fox Sports, and a gaming operator, i.e. the TSG.