One of the most recognizable names in sports and sports betting could launch in New York if the state legalizes sports betting thanks to a new partnership.
Penn National Lands New York Access: Penn National Gaming (NASDAQ: PENN) and Rush Street Interactive (NYSE: RSI) signed a partnership Monday in a deal that gives Penn National and its Barstool Sportsbook possible access to the New York sports betting market if the state legalizes online sports betting and iGaming in the future.
The agreement gives Penn a 20-year deal and “second skin” access to the state of New York.
Barstool Sportsbook is now operational in Pennsylvania and Michigan. The company plans to have online sports betting in 10 states by the end of 2021.
In Michigan, Barstool jumped to third place for market share in early results for the state’s online sports betting market — and the company’s brand strength may have contributed, as it spent less than others on promotional activities for its sportsbook in the state.
Why It’s Important: New York is expected to be a major state to watch in sports betting, with its huge population and the numerous professional sports teams headquartered there.
“Let me translate: WE WILL OWN NEW YORK,” Barstool Sports founder Dave Portnoy tweeted. He also tweeted later questioning how Penn National gaining access to online sports betting in New York isn’t front-page news.
Rush Street Could Win In Deal: The two-way deal could make recently public Rush Street Interactive a winner as well.
The company trades skin access to Penn National and gains access to three additional states with the possibility of a fourth.
“The addition of Ohio, Maryland and Missouri to our market access portfolio builds on RSI’s success in neighboring states and will create enhanced marketing efficiencies for our BetRivers brand,” said Rush Street President Richard Schwartz.
The company chose the states included in the deal due to their close proximity to the states of Illinois and Pennsylvania, where Rush Street has strongholds. The deal also grants Rush Street Interactive the right to first offer for a betting skin in the state of Texas.
Rush Street Interactive will report fourth-quarter earnings on March 10.
PENN, RSI Price Action: Shares of Penn National were up 1.34% at $119.40 at last check Tuesday. Shares of Rush Street Interactive were down 8.42% at $16.42.
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