Australian sportsbook PointsBet has been granted access to the online betting and gaming markets of Pennsylvania and – when it regulates online gambling – Mississippi via an extension of its market access agreement with Penn National Gaming (PNG).
The extension of the 2019 deal allows PointsBet access to the online market in those states through deals with PNG’s land-based casinos. It means PointsBet products could soon be available in 14 US states, pending the passage of new legislation and regulatory approval.
“We are very excited about adding another two guaranteed online market access points to our portfolio in Pennsylvania and Mississippi,” said PointsBet CEO Sam Swanell, who estimates the Pennsylvania iGaming market to be worth $1.75bn per year. Whilst Pennsylvania already allows igaming and online betting within the state, Mississippi is yet to follow suit.
PNG president/CEO Jay Snowden added: “With the addition of Pennsylvania and Mississippi, we are pleased to expand out market access partnership with PointsBet to seven states.
“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 has also agreed to pay PNG an undisclosed proportion of the net gaming revenues derived from the new states.
The agreement, first signed in July 2019, initially included disposal restrictions imposed on PNG and Penn Interactive Ventures (PIV).
The extension will see these restrictions lifted from the two companies, in addition to giving PointsBet’s US division access to the Pennsylvania and Mississippi markets for the next twenty years.