Penn National Gaming Signs Deals for Sports Betting
Penn National Gaming has signed multiple deals with leading sports betting operators. These deals are meant to secure partnerships under their licenses in 16 states. However, at least nine of the states in the deals haven’t legalized sports betting or online gambling. So, is this an optimistic wager or a lawsuit waiting to happen for Penn National Gaming? Well, time will tell if their pre-emptive moves will pay off. Of course, that’s not to say that there won’t be benefits for all parties.
Some of the operators who have signed on include DraftKings, PointsBet, theScore, the Kambi Group, and the Stars Group for sports wagering and online gaming. These deals will be the responsibility of Penn Interactive Ventures (PIV). It appears that everyone is hoping to cash in on the PASPA-free United States.
Jon Kaplowitz, Vice President of Penn National Gaming, gave a statement that stated a few key facts. In it, he noted that the deals would have access to Penn’s “non-primary licenses” for “revenue sharing” and “upfront cash” for “market access fees”.
Currently, Penn National Gaming is the first iGaming launch in Pennsylvania and was the first to take a wager in the state. Further, the operator is planning to introduce “in-house sportsbooks” to their Indiana and Iowa properties “in the coming weeks”.
Penn National Gaming & the Illegal States
Despite their gamble on legal gambling, at least nine states where Penn National Gaming runs operations don’t allow betting on sports. In fact, they have no existing plans to legalize the pastime at all. These states are Kansas, Florida, Louisiana, Maine, Missouri, Michigan, Massachusetts, Ohio and Texas.
Since Penn own and operate 38 casinos in the US, their new deals could become quite lucrative. That is, if the nine other states decide to add legislation. However, Kansas and Texas are unlikely to allow it at all. Major donors for the state’s politicians are pushing against new gambling laws.
More about the Partnerships
According to reports, most of the deals will last for 20 years and will give Penn National Gaming roughly 5% of the profits each. These deals are perfectly legal, if a bit fishy. Of course, there’s nothing wrong with them, so time will tell if they are worthwhile for players and sports bettors alike.