The Stars Group Inc. today announced that it entered into an agreement with Penn National Gaming that grants it options to operate online betting and gaming in states where Penn currently owns or operates casino properties. The agreement covers nine states, which, when combined with The Stars Group’s existing market access deals, gives The Stars Group access in up to 20 states. Unless otherwise noted, all dollar ($) amounts are in U.S. dollars.
The agreement grants The Stars Group the option to own, operate and brand real-money online sports betting, poker and casino offerings in each of the applicable states subject to license availability, state law and regulatory approvals. As it relates to sports betting, The Stars Group’s options currently provide first skin access in Illinois, Indiana, Ohio and Texas, and second skin access in Kansas, New Mexico, Maine, Massachusetts and Michigan.
“We are excited to announce this agreement with Penn, a respected leader in the gaming and racing industry in the United States,” said Rafi Ashkenazi, Chief Executive Officer of The Stars Group. “This agreement further extends our market access platform, as we work to establish our FOX Bet business as one of the leaders in the emerging U.S. online betting and gaming market.”
Timothy J. Wilmott, Chief Executive Officer of Penn commented, “The Stars Group is one of the world’s largest publicly listed online gaming companies. Its agreement with FOX Sports positions it to become a leader in the U.S. industry, and we are 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.”
Under the terms of the agreement, Penn will receive a revenue share from the operation of the applicable offerings by The Stars Group, an up-front cash payment of $12.5 million, and potential additional cash payments upon and following The Stars Group’s exercise of each option.
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