Penn National Gaming secures New York market access via Rush Street partnership
Barstool Sportsbook operator’s second-skin access in Empire State dependent on final legislation on mobile betting
Penn National Gaming (PNG) has secured market-access in New York via a strategic partnership with Rush Street Gaming’s River Casino.
The 20-year deal provides PNG with second-skin access in the Empire State, although its capacity to operate mobile betting and igaming in the state will depend on final regulations.
In January, state Governor Andrew Cuomo said mobile betting would form part of New York’s plan for economic growth post Covid-19.
Cuomo said he intended for the state lottery to operate the vertical but has not confirmed whether this could mean a New Hampshire-style monopoly or a state-run sportsbook to run alongside commercial operators.
The stakes for a NY sports betting bill with a second skin keep going up. https://t.co/KSUCxac0jI
— Chris Grove (@OPReport) February 22, 2021
There is a chance lawmakers could approve a single-skin system, meaning only a handful of operators with land-based betting licenses would be able to operate mobile betting.
But the industry is planning for the best possible outcome of multiple skins to be offered to commercial operators.
Jon Kaplowitz, PNG SVP for interactive gaming, said: “Gaining potential access to what could become one of the nation’s most lucrative sports betting markets has been a major priority for our company.
Let me translate: WE WILL OWN NEW YORK. $penn ???? https://t.co/Ph7nItM9YF
— Dave Portnoy (@stoolpresidente) February 22, 2021
“We are hopeful that the New York State Assembly will follow those leading revenue-producing states that allow for multiple skins for mobile sports betting.
“A state the size of New York certainly warrants open competition and a free-market approach,” he added.
PNG launched its Barstool Sportsbook app in Michigan in January and has since seized 24% of the state’s market share.
“We’re very encouraged by the initial results we’ve seen in Michigan, as we registered over 48,000 new customers and generated total handle of $27.5m during the first 10 days of operation,” Kaplowitz said.
“We remain very confident in our ability to win sizable share in new markets based on the power of the Barstool brand and media assets, which allows us to begin to leverage the meaningful cross-sell opportunities from the Barstool Sportsbook, icasino and our mychoice loyalty program audiences,” he added.