PointsBet Granted Access to Pennsylvania and Mississippi

Pointsbet has added Pennsylvania and Mississippi to its online betting and gaming portfolio through a deal with Penn National Gaming.

PointsBet and Penn National Gaming Strengthen Their Partnership

Australian online bookmaker PointsBet has gained online sports betting and iGaming market access to the states of Pennsylvania and Mississippi. The agreement is an extension of the 2019 deal allowing PointsBet to enter the online market in those states through deals with Penn National Gaming’s land-based casinos.

Under the terms of the deal, the market access for each additional state will have a duration of 20 years. The deal expands PointsBet’s US sports betting presence to 14 states and is subject to the passing of new legislation and regulatory approval.

Currently, only retail sportsbooks are legalized in Mississippi. The Magnolia state legalized sports betting in 2018. iGaming and online betting are allowed in Pennsylvania.

PointsBet CEO Sam Swanell shared his excitement about adding two new online markets to the company’s portfolio. He estimated the Pennsylvania iGaming market to be valued at $1.75 billion per year. 

Commenting on the deal, PNG president and chief executive officer Jay Snowden said the company is pleased to expand its market access partnership with PointsBet to seven states. He added:

“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.”

PointsBet will also pay Penn National Gaming a fraction of the net gaming revenues coming from the new states. The extension of the agreement dated July 31, 2019, lifts the disposal restrictions previously imposed on Penn National Gaming and Penn Interactive Ventures (PIV). The “disposal restrictions” prohibited Penn to sell shares and options received in the deal for a period of two years. 

Apart from the seven states available through Penn National Gaming, PointsBet has access to seven additional states. Barstool Sportsbook serves as Penn’s primary sports betting brand and it is live in three states.

New York and Canada as Key Opportunities for Pointsbet

Last week, PointsBet announced the acquisition of Banach Technology for $43 million in an attempt to further expand its presence in the USA.

PointsBet CEO Sam Swannell also highlighted New York and Canada are potential opportunities for the company. The operator has been proactively establishing connections in Canada. Additionally, it boasts second-skin access in New York, if the state allows online betting.

Pointsbet experienced a 345% year-on-year increase of its US handle to $649 million in the six months to December 31. Gross revenues were up 92% to $17.7 million.