The Stars Group and Penn National Gaming Ink a New Online Betting and Gaming Deal
Under the provisions of the new deal, the Toronto-based firm will be able to operate online betting and gaming in those states where Penn National Gaming is currently doing business.
This deal covers a total of 9 states where Penn owns or operates casino properties, which will increase The Stars Group’s existing market to 20 states.
An Important Deal for Both Sides
The partnership deal enables the Canadian gaming giant to own, operate and brand its online sports betting, poker and casino offer wherever state law and regulations allow.
When it comes to sports betting, The Stars Group currently offers first skin access in Illinois, Indiana, Ohio and Texas, and second skin access in Kansas, New Mexico, Maine, Massachusetts and Michigan.
Commenting on the latest move, Rafi Ashkenazi, Chief Executive Officer of The Stars Group said they were excited to announce the agreement with Penn National Gaming, a respected leader in the gaming and racing industry in the United States. He added the new deal further extended the company’s market access platform, as they worked to establish the new FOX Bet business as one of the leaders in the emerging U.S. online betting and gaming market.
Timothy J. Wilmott, Chief Executive Officer at Penn National Gaming stated that The Stars Group was one of the world’s largest publicly listed online gaming companies. He further said that its agreement with FOX Sports would position it to become a leader in the U.S. industry, and added his company was excited to work with The Stars Group to capitalize on its proven ability to leverage its products to gain share in the growing market for online gaming.
Expanding the Market Presence
Thanks to this partnership deal, the Pennsylvania-based operator of casinos and racetracks will get a share of the revenue from the operation of The Stars Group’s offering, along with a payment of $12.5 million. The Stars Group’s exercise of each available option will further increase the size of the additional cash payments.
Jon Kaplowitz, Penn National Gaming’s Senior Vice President of Interactive Gaming pointed out he was proud his company would be providing the top names in sports betting, online gaming and poker access to their 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.
The Stars Group is a leading provider of technology-based product offerings in the gaming and interactive entertainment industries, while its brands have millions of registered customers around the world. The list of brands owned and operated by the company includes such names as PokerStars, PokerStars Casino, BetStars, Full Tilt, FOX Bet, BetEasy, Sky Bet, Sky Vegas, Sky Casino, Sky Bingo, Sky Poker, and Oddschecker.
Last month, The Stars Group and Akwesasne Mohawk Casino Resort inked an agreement for online betting and gaming market access and retail sportsbook in New York.
- Yogonet: https://www.yogonet.com/international/noticias/2019/08/01/50524-penn-national-signs-market-access-deals-with-draftkings-and-the-stars-group
- European Gaming: https://europeangaming.eu/portal/press-releases/2019/08/02/51823/the-stars-group-and-penn-national-gaming-enter-agreement-for-online-betting-and-gaming-market-access/