Penn National Gaming (PNG) is in conversation with a number of potential sports media partners according to reports. Unlike most of their competitors, PNG does not currently have a sports brand to lead with and is looking for a partnership with a company that can be fully integrated.
Penn National Gaming Looking for a Partnership
PNG is looking for a partner in order to get a stronger foothold in the sports betting market. At the moment, the brand operates in 19 states across the country. What PNG would like is to form a partnership with a leading sports media company as explained by CEO Timothy Wilmott.
He noted that PNG already has deals in place with sport betting companies. They have four deals with DraftKings, theScore, PointsBet and The Stars Group. They also have an exclusive betting partnership with Kambi. These deals that were announced back in August, allowed the company to offer online gambling and sports betting at their properties that are located in states where legalized sports gambling is permitted.
Casino Giants Want to Add Sports to Portfolio
Timothy Wilmott will step down as CEO of PNG at the end of this year. He will be replaced by Jay Snowden who is the Chief Operating Officer. He spoke favorably about the impact that sportsbooks have had on their casinos. He said that PNG properties with physical sportsbooks have experienced an average of 15% year-over-year growth in table game revenue.
"We do envision having partners, potentially, that we will be thinking about how we can engage with their customers who are sports enthusiasts at this point," said Snowden. "And then of course, once they become part of our sports betting database, introduce them to our casino product as well." "In an ideal scenario, you have aligned incentives and mutual skin in the game to drive long term success," Snowden added.
Snowden's remarks make it clear that PNG don't just want an advertising deal, they want a fully integrated partnership. This point of view makes sense for them because they can use this as a tool to acquire a database full of potential new casino customers. They've already seen the benefits from their retail sportsbooks of the increased traffic and they want to take it a step further.
PNG Continues to Make Moves in the Meanwhile
Evolution Gaming, one of the world's leading suppliers of live gaming solutions has teamed up with PNG. The deal will allow PNG to broadcast live casino games to players within Pennsylvania. PNG will use Evolution Gaming's studio to stream the live games throughout the
state. This deal follows an October agreement with Scientific Games and the Open Games System distribution network. PNG has 40 facilities in 18 North American jurisdictions.
On Thursday, PNG released their financial report card for the three months ending September 30. During that period, revenue totalled $1.35 billion which was a 71.3% increase from Q3 in 2018. Net income also rose to $43.7 million which represents a 21% increase. PNG acquired Pinnacle Entertainment Inc. for $2.8 billion in Q4 of last year. The transaction gave PNG a foothold in three states it hadn't previously been in: Colorado, Louisiana and Iowa.