ointsBet has announced that its wholly owned subsidiary, PointsBet USA Inc. and Penn National Gaming Inc. have agreed to extend the Online Gaming Services Framework Agreement dated 31 July 2019 to provide PointsBet with online sports betting and iGaming market access in Pennsylvania and Mississippi.
Under the terms of the deal, the market access for each additional state will have a duration of 20 years. The deal expands PointsBet’s US sports betting presence to 14 states and is subject to the passing of new legislation and regulatory approval.
PointsBet will be responsible for all licensing and approval costs in connection with launching and operating the PointsBet services (including, those associated with the licensed operator obtaining and maintaining the applicable B2C Operating Licenses required for PointsBet to operate the services in each Additional State).
Commenting on the transaction PNG President and Chief Executive Officer Jay Snowden said: "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."
PointsBet Group Chief Executive Officer 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 US$1.75 billion 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."