PointsBet USA has struck an extended online gaming services framework agreement alongside Penn National Gaming to secure sports betting and igaming access in Pennsylvania and Mississippi.
The term of the agreement for each additional state is twenty years from the date that the PointsBet branded service is first offered to players in the applicable region.
The execution of the collaboration, which was first dated July 31, 2019, is subject to enabling legislation in Mississippi, as well as licensure in each of the aforementioned jurisdictions.
Jay Snowden, PNG president and chief executive officer, 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 will be responsible for all licensing and approval costs in connection with launching and operating the services, including those associated with the licensed operator obtaining and maintaining the applicable B2C operating licenses required to operate the services in each additional state.
Furthermore, it is added that PointsBet will pay PNG a portion of the net gaming revenues derived in both Pennsylvania and Mississippi.
Sam Swanell, PointsBet Group CEO, 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.”