PointsBet Gains Pennsylvania and Mississippi Sports Betting, iGaming Access via Penn Partnership

  • The operator is excited to add “two guaranteed online market access points” to its portfolio
  • The Penn partnership expansion will give PointsBet USA a sports betting footprint in 14 states
  • The new deal provides it with 20-year market access to Pennsylvania and Mississippi
  • CEO Sam Swanell is eyeing the $1.75bn annual sports betting, iGaming market in Pennsylvania
  • PointsBet reinforced its US position with the $43m purchase of Banach Technology this month
two businessmen shaking hands against a city nighttime backdrop
PointsBet has expanded an existing partnership with Penn Gaming to secure sports betting and iGaming market access into both Pennsylvania and Mississippi. [Image: Shutterstock.com]

Expanding the partnership terms

Australia-based PointsBet Holdings Limited has announced that its subsidiary PointsBet USA has secured sports betting and iGaming market access in Pennsylvania and Mississippi via an expanded partnership with Penn National Gaming. The news of the dual state market-penetrating partnership appeared in a press release on Wednesday.

excitement at “adding another two guaranteed online market access points”

PointsBet Group CEO Sam Swanell expressed excitement at “adding another two guaranteed online market access points” to his firm’s portfolio in Pennsylvania and Mississippi. Access to both states is subject to licensure, with access to the Magnolia State additionally dependent on legislation.

The expanded partnership between the Melbourne-headquartered sportsbook operator and the Wyomissing, Pennsylvania-based casino giant comes as an extension of the pair’s Online Gaming Services Framework Agreement dated July 31, 2019.

Sports betting presence in 14 states

Currently, PointsBet-branded retail sportsbooks are only available in Iowa, Indiana, Illinois, and the US subsidiary’s native New Jersey, and there are plans to launch in Colorado and Michigan later this year. When legislation permits it to go live in Pennsylvania and Mississippi, PointsBet USA’s sports wagering footprint will expand to 14 states, according to the press release.

Access to seven of those states comes directly through its partnership with Penn National. The duration of PointBet’s market access agreement with Penn National into Pennsylvania and Mississippi is for 20 years from the date it launches in both states.

In addition, PointsBet will be “responsible for all licensing and approval costs in connection with launching and operating the PointsBet services,” and will pay Penn National a portion of its net gaming revenues.

CEOs positive about the move

Penn National president and CEO Jay Snowden was positive about the extension of his firm’s market access tie-up with PointsBet USA to now include seven states. Snowden added that the company was “thrilled with the performance of our equity stake in [PointsBet] since inking the original agreement.”

sports betting and iGaming market in Pennsylvania […] estimated to be over US$1.75 billion per annum”

Snowden’s counterpart at PointsBet, Swanell, highlighted a “mature, total addressable sports betting and iGaming market in Pennsylvania […] estimated to be over US$1.75 billion per annum.”

The access to an additional two states continues an aggressive strategic month for PointsBet. On March 16, it announced the $43m purchase of B2B betting algorithm and platform developer Banach Technology in a deal designed to consolidate PointsBet’s US market position.