Penn Inks 20 Year Deal With Draftkings, Others for Sports Betting

Written by :

Aaron Goldstein

Published on :

1 August, 2019

Penn Inks 20 Year Deal With Draftkings, Others for Sports Betting

Penn National has forged a 20-year deal with Draftkings, the Stars Group, PointsBet, theScore, and Kambi to provide sports betting. It is being called one of the biggest sports betting deals in the US to date.

*6 weeks free trial - test drive - best in the biz
*Deposit with Bitcoin - They'll double it!
*Get your own domain, customized website, logo
*Switch in under an hour, earn mrore $$ for doing so
*Odds featured on DonBest.com
*Thousands of betting options daily + live in-play
*Easy and discreet payment options include gift cards
*Walmart gift cards also accepted
Start Earning Money From Your Sheet Here

Kambi replaces William Hill as Penn National's primary software provider.

“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 CEO Kristian Nylén said.

Kambi expects to open its first Penn sportsbooks Indiana and Iowa in Q3 of this year, which would be prior to October 1 if all goes according to plan. Online sports betting could come as early as 2020.

“We’re pleased to be providing the top names in sports betting,” Penn’s SVP of Interactive Gaming Jon Kaplowitz said. “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.”

A stock reshuffle will grant Penn 10,372,549 shares in PointsBet as part of the agreement. The Australian-based sports betting firm will gain entry into the newly open Indiana market.

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 each of the states outlined below, pursuant to a first, second or third skin, as applicable, and subject to license availability, state law, and regulatory approvals.

    DraftKings:
        States Covered: Florida (1st skin), Indiana (3rd skin), Missouri (1st skin), Ohio (1st skin), Pennsylvania (1st skin), Texas (1st skin) and West Virginia (2nd skin)
        Term of agreement: 10 years, subject to a ten year extension
        Key economic terms: Revenue share to Penn National based on net gaming revenue

    PointsBet:
        States Covered: Indiana (2nd Skin), Louisiana (1st Skin), Missouri (1st Skin), Ohio (1st Skin) and West Virginia (3rd Skin)
        Term of agreement: 20 years
        Key economic terms: Revenue share to Penn National based on net gaming revenue
        Equity Position: PIV will take a strategic equity stake of 5.28% in PointsBet, with an additional $2.5 million access fee for Ohio, based on certain conditions, payable in cash or equity at Penn National’s option. In addition, PIV will receive 10,372,549 options, exercisable for two years, to acquire additional shares of PointsBet

    theScore:
        States Covered: Indiana (2nd skin), Iowa (2nd skin), Kansas (3rd skin), Louisiana (1st skin), Maine (3rd skin), Massachusetts (3rd skin), Michigan (3rd skin), Mississippi (1st skin), Missouri (2nd skin), Ohio (2nd skin) and Texas (2nd skin)
        Term of agreement: 20 years
        Key economic terms: Revenue share to Penn National based on net gaming revenue
        Equity Position: PIV will take a strategic equity stake of 4.7% in theScore, with the potential for this stake to increase as additional market access fees become payable.

    The Stars Group:
        States Covered: Illinois (1st skin), Indiana (1st skin), Kansas (2nd skin), New Mexico (2nd Skin), Maine (2nd skin), Massachusetts (2nd Skin), Michigan (2nd Skin), Ohio (1st Skin) and Texas (1st Skin)
        Term of agreement: 20 years
        Key economic terms: Upfront payment of $12.5 million payable cash, with an additional access fee of $5 million in cash for Texas based on certain conditions; revenue share to Penn National based on net gaming revenue, with a one-time bonus based on net gaming revenue in 2023

TheScore has also scored big as part of the deal. They will run skins in these states:

    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.”

Draftkings will finally be coming to Pennsylvania as part of the deal. They will also gain entry into Indiana. Florida would be another feather in their cap should sports betting ever become legalized in the Sunshine State. Penn National owns and operates the Sanford–Orlando Kennel Club – Longwood, Florida.

CBO Ezra Kucharz said of the deal:

“With dozens of states having already legalized sports betting or poised to do so in the near future, this expanded partnership ensures DraftKings is positioned to quickly enter new markets. Penn National Gaming brings tremendous resources, people and experience to the partnership and, as we finalized the terms of the deal, it was abundantly clear there is a real synergy between our two companies that bodes very well for the future.”

- Aaron Goldstein, Gambling911.com