Penn National Gaming has entered into a variety of online sports betting and igaming market access agreements, in addition to recruiting UK-based Kambi for sportsbook integration ahead of a nationwide on-property and online roll-out.
As a result Kambi is to power the offerings across its portfolio of 40 gaming facilities in 19 US states, with multi-year agreements entered alongside operators DraftKings, PointsBet, theScore and The Stars Group.
Under 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 certain stipulated regions, pursuant to a first, second or third skin, as applicable, and subject to license availability, state law, and regulatory approvals.
Legal sports betting is active or pending in eight jurisdictions where Penn operates, with bills filed across numerous other states where the firm has a land-based presence.
Jon Kaplowitz, Penn’s vice president of interactive gaming, said of the deals with the quintet: “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.
“Sports betting represents an exciting new growth opportunity for Penn National. Our skin agreements announced today will help fund the cost of launching and maintaining our primary sports betting and igaming operations, both by way of the upfront consideration and the long term revenue sharing arrangements, which are consistent with industry standards and subject to minimum guarantees.
The first launches are due to take place in Q3 2019, with an initial focus placed upon Penn’s brick and mortar casinos in Iowa and Indiana, with online to follow in 2020.
Rafi Ashkenazi, CEO of The Stars Group, whose deal covers nine states and comes with a $12.5m upfront payment, commented; “We are excited to announce this agreement with Penn, a respected leader in the gaming and racing industry in the United States.
“This agreement further extends our market access platform, as we work to establish our Fox Bet business as one of the leaders in the emerging US online betting and gaming market.”
Kristian Nylén, Kambi’s CEO, added: “Kambi’s strategy has always been to partner with tier one operators, particularly those that share our vision and passion for sports and 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.”