Penn National expanding its reach in the Sports Betting Market
Penn National Gaming has been making headlines recently from reporting their second quarterly income to the retirement of its CEO. However, for the gambling industry the biggest for them is Penn National expanding its reach in the Sports Betting Market. This is because they just sent a press release to announce several strategic partnerships with leading sports betting operators.
These deals will enable their new partners to access several sports betting market in the U.S. According to gambling industry news, the new partners include: DraftKings, PointsBet, theScore and The Stars Group.
For Penn National Gaming this is a win-win situation for them as they are basically selling white label sportsbook solutions. This is because they are basically renting out their sports betting license in exchange for monetary and ownership rights. Thus, their partnerships will have to pay Penn National a simple fee, equity and a share of their betting revenues.
Penn National Restructuring its Sports Betting Strategy
The new strategic partnerships will be done under Penn Interactive Ventures, which is a subsidiary of Penn National. Therefore, Penn Interactive Ventures will manage these new partnerships. Furthermore, it will also manage the company’s primary sports betting and iGaming initiatives.
However, their partnership with Kambi as their main national provider for sports betting software development will remain in place. The new contract just means that they are officially their main providers for their sports betting and iGaming operations.
These “skin” partners will be able to own, operate their own gambling operation wherever Penn National has a license. Thus, they will be able to open real money online sports betting, poke and casinos in these states.
According to Jon Kaplowitz, Penn National’s Sr. Vice President of Interactive Gaming, “Sports betting represents an exciting new growth opportunity”. This is because it will “help fund the cost of launching” and maintaining their sports betting and iGaming operations.
Several sportsbook software solutions provider are curious about this approach in the U.S. This is because Penn National is the first company to allow white label sportsbook in the United States.