PointsBet USA has set its sight at expanding its footprints across the United States as the betting operator secured an agreement with Penn National Gaming.

The agreement – announced in a press release issued on Monday – will enable one of the country’s fast growing online sportsbooks to penetrate the sports betting and igaming arena in Pennsylvania and Mississippi.

PointsBet USA-Penn National Gaming Deal

According to extended online gaming services framework agreement, the term of the agreement for each additional state will last for twenty years and it will kick in from the date that the PointsBet branded service is first offered to players in the applicable region.

First dated July 31, 2019, the execution of the collaboration would depend on the legalization of online sportsbetting in Mississippi and the acquisition of license in each of the aforementioned territories.

PointsBet assumes responsibility for all licensing and approval costs in connection with launching and operating the services. The cost includes those associated with the licensed operator obtaining and maintaining the applicable B2C operating licenses required to operate the services in each additional state.

Moreover, PointsBet will also pay PNG a portion of the net gaming revenues generated from both Pennsylvania and Mississippi.

Executive Insights

Jay Snowden, PNG president and chief executive officer, spoke of its landmark deal with PointsBet USA:

“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.”

Sam Swanell, PointsBet Group CEO, also expressed optimism on the new collaboration with PNG. The executive also explained with the aid of estimates what kind of impact the agreement would bring for the company in a yearly basis.

“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.”