In two short months since listed on the ASX, PointsBet Holdings Limited (ASX: PBH) has accelerated its activities in the lucrative U.S gaming market, today announcing a strategic partnership with Penn National Gaming (Nasdaq: PENN).
Under the agreement, the Melbourne-based bookmaker has secured market access to West Virginia and Indiana where sports betting has been legalised, as well as Ohio, Indiana and Missouri where licenses are expected to be issued in the future.
“Partnering with Penn provides PointsBet access to five important States and the potential for further State deals,” said PointsBet CEO Sam Swanell.
“We are delighted to partner with such a forward thinking and innovative organisation.
“This agreement evidences the confidence our partners continue to have with PointsBet’s in-house technology, products, brand and team.”
Under the terms of the 20-year partnership, PointsBet will become the digital sports betting partner in the 5 States where the American casino operator can provide market access following last year’s landmark decision in the United States where the Supreme Court overturned a 1992 law which prevented sports betting beyond the States of Nevada and New Jersey.
Penn National Gaming currently operates 41 facilities across 19 jurisdictions with facilities featuring approximately 50,500 gaming machines, 1,300 table games and a loyalty program of more than five million active customers.
“PointsBet has proven that a great product, creative marketing strategy, and best-in-class team can win in a competitive market,” said Jon Kaplowitz, PNG Senior Vice President, Interactive Gaming.
“We are thrilled to be forming a strategic partnership with PointsBet and are confident that they will continue to thrive in the growing sports betting marketplace.”
As consideration for the partnership, PNG has entered into a subscription agreement with PointsBet which will issue shares equivalent to a 5.28% stakes in PointsBet Holdings, as well as 10,372,549 options exercisable at $4.75 per option.
Shares in PBH closed on Wednesday at $2.98 per share but reached highs of $3.53 (+18.5%) on Thursday morning following the pre-market announcement
PointsBet Holdings listed on the ASX on 12 June 2019 at an IPO offer price of $2.00 per share.