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  • PointsBet’s (PBH) U.S. subsidiary and Penn National Gaming (PNG) have agreed to extend their online gaming services framework agreement
  • This will allow Pennsylvania and Mississippi to access PBH’s online sports betting and iGaming platforms
  • As part of the transaction, PointsBet has agreed to release PNG and Penn Interactive Venture, as well as its respective affiliates, from the disposal restrictions contained in the agreement
  • PointsBet will also pay PNG a portion of the net gaming revenues derived from each additional state
  • The agreement will expand PointsBet’s U.S. sports betting footprint to 14 states
  • PBH estimates the sports betting and iGaming market in Pennsylvania is worth over US$1.75 billion (roughly A$2.31 billion) per year
  • PointsBet shares last traded at $13.48

PointsBet (PBH) subsidiary PointsBet USA has extended its online gaming services agreement with Penn National Gaming, allowing PBH online sports betting and iGaming market access in Pennsylvania and Mississippi.

The online gaming services framework agreement, dated July 31, 2019, is subject to enabling legislation and licensure in each of those states.

“We are very excited about adding another two guaranteed online market access points to our portfolio in Pennsylvania and Mississippi. A mature, total addressable sports betting and iGaming market in Pennsylvania is estimated to be over US$1.75 billion (roughly A$2.31 billion) per annum,” said PointsBet Group Chief Executive Officer Sam Swanell.

As part of the transaction, PointsBet has agreed to release Penn National Gaming (PNG) and Penn Interactive Venture, as well as its respective affiliates, from the disposal restrictions contained in the agreement.

The agreement will expand PointsBet’s American sports betting footprint to 14 states and will cover all licensing and approval costs in connection with launching and operating the PointsBet services.

PointsBet will also pay PNG a portion of the net gaming revenue derived from each additional state.

 “With the addition of Pennsylvania and Mississippi, we are pleased to expand our market access partnership with PointsBet to seven states,” said PNG President and Chief Executive Officer, Jay Snowden.

“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”.

The agreements for each additional state have a term of twenty years from the signing date.

PointsBet shares last traded at $13.48 each.

PBH by the numbers
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