PointsBet Holdings Limited on Friday said its wholly owned subsidiary, PointsBet USA Inc., has extended its partnership with Penn National Gaming Inc. to give PointsBet market access in Pennsylvania and Mississippi for online gaming and sports betting.
PointsBet now has market access in 14 states, and PointsBet and Penn National are partnered in seven states.
The companies originally signed an online gaming services framework agreement on 31 July, 2019.
PointsBet said its access in Mississippi is subject to passage of state legislation, while Pennsylvania already has legalized online gaming and sports betting.
PointsBet still needs to be licensed in both states, the company added.
In exchange for the extension, PointsBet released Penn National Gaming (PNG), Penn Interactive Ventures, LLC (PIV) and their respective affiliates from the disposal restrictions in the original agreement related to securities that were acquired by PIV.
PointsBet will pay PNG a portion of the net gaming revenue it makes in Pennsylvania and Mississippi.
PointsBet will have market access in the two states for 20 years from the date its branded service goes live.
“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,” PNG president and CEO Jay Snowden said in a statement. “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 Group CEO Sam Swanell added: “We are very excited about adding another two guaranteed online market access points to our portfolio. A mature, total addressable sports betting and online gaming market in Pennsylvania is estimated to be more than $1.75 billion per annum.”
PointsBet is a corporate bookmaker with operations in Australia and the United States.