To protect sports betting and igaming connections in Pennsylvania and Mississippi, PointsBet USA and Penn National Gaming have signed an expanded online gaming services framework agreement.
For each additional territory, the deal is for twenty years from the date when the PointsBet branded service is first provided to players in that country.
The collaboration’s implementation, which was first scheduled for July 31, 2019, is contingent on Mississippi authorising legislation as well as licensure in both of the aforementioned jurisdictions.
Expanded market access
PNG’s 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.”
Both licencing and approval costs incurred in conjunction with the opening and operation of the services will be borne by PointsBet, including those incurred by the licenced operator in securing and retaining the relevant B2C operating licences needed to operate the services in each additional jurisdiction.
In addition, PointsBet will pay PNG a share of the net gaming profits created in both Pennsylvania and Mississippi.
Two guaranteed online market access points
PointsBet Group CEO Sam Swanell added: “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 $1.75bn 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.”