Boom Sports Teams Up With Penn National For Market Access In 5 States

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Established New York game developer and technology provider Boom Sports announced Wednesday that it is about to enter Business-to-Consumer sports betting in the US after striking a deal with Penn National Gaming. Boom Sports officially gets market access to operate its own brand of mobile sportsbook and online casinos in five states to complement its already strong Business-to-Business portfolio in the US sports betting industry.

As part of the agreement with Penn National, Boom Sports has secured sports betting and icasino skins for licenses in Ohio, Missouri, Louisiana, Mississippi, and New Mexico. The company hopes to parlay their success as a game developer and technology provider and their current relationships with NBC Sports, the XFL and now Penn National to build a recognized, high-end brand for the US sports betting market.

“This agreement marks a pivotal moment in the history of Boom Sports,” said the firm’s Co-Founder and CEO Stephen A Murphy. “As we aim to become the premier technology provider for the real-money online gaming industry, this deal will allow us to unveil our unique sportsbook vision directly to consumers.”

A deeper dive

Boom Sports has been given the OK to roll out their platform, under the Penn National umbrella, in stages. Their first skins will allow the company to go live in Mississippi and Louisiana, the second skin will see the company launch in Ohio and the third skins will see Boom setting up shop in Missouri and New Mexico. Additional states could be added in the future and the licenses will be held by Boom for up to 20 years.

The catch? Mississippi, Louisiana, and Ohio haven't yet legalized mobile betting and gaming and the others are in various stages of debating the merits of sports betting for their state. Boom, in turn, may have gained market access but to think that their name will be out there in any substantial way anytime soon may be a bit more of a big ask.

That’s said, Boom is looking forward to evolving their vision to become a bigger player in the US legal sports betting scene. “We look forward to powering the digital products of the leading online casino operators in the world through our innovative game content, casual-friendly user experience, and superior technology,” Boom Sports president and chief technology officer Med Nadooshan said.

Boon for Boom

Boom's newfound relationship with Penn National gives the company instant credibility. Not only is Penn National an established name already on the US sports betting scene, but they have been aggressive in their expansion plans lately as evidenced by their presence in the most bet-friendly states and their 36% acquisition of Barstool Sports in February.

Boom enters into the partnership with Penn National not having to pay a dime. In lieu of any payment, Boom will be tasked with creating a series of free-to-play games and products for Penn National. One has already been completed - NASCAR Finish Line was launched in February and has gotten some airtime already. Another, that will fall under the Barstool Sports umbrella is set to be coming in the next few months.

Boom Sports will also create real-money games and content for Penn National.

Penn National's gain

Penn National, with this agreement, has the luxury of trading access to markets that haven't opened up yet for valuable free and real-money content for their constantly emerging site.

2019 numbers and figures from Q1 of this fiscal year have shown that acquisition and startup costs for some major sportsbooks in the US have driven overall revenues down. Penn National is able to in-part mitigate those costs by bringing Boom Sports into the fold and allowing them to launch their own consumer-facing betting product. All while Boom is creating new games for Penn National in exchange for their backing.

And in this time of COVID-19, not having to spend is a big deal for sportsbook providers.

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