Penn National Announces New Agreement, Likely Heading to New York

Penn National Gaming was in the news again on Monday, this time targeting the sports betting market in the state of New York. All sports betting in New York is currently limited to in-person, but there is a chance that could change in 2021.

Penn National announced an agreement with Capital Region Gaming, LLC, which will give the company market access through the Rivers Casino & Resort Schenectady. The Rivers Casino is owned and operated by Rush Street Gaming, one of the U.S. sports betting industry’s major players.

This deal is not yet official, and it is still pending the final regulatory approvals. Online sports betting in New York must also be approved before this deal officially takes shape.

Rush Street and Penn National also agreed to a deal that will cover sports betting in Ohio, Maryland, and Missouri. None of these states have legalized sports betting either, but they are all expected to change their laws soon.

Partnering with Rush Street in New York could give Penn National access to one of the biggest sports betting markets in the United States. The Barstool app has been successful, and it could become one of the biggest in the U.S.

Still No Mobile Betting

New York has had retail sports betting since July 2019, but the state has had very limited growth since that time. The lack of mobile betting has kept New York from becoming a sports betting giant, and Governor Andrew Cuomo played a role in that.

Now, Cuomo has changed his stance and is urging lawmakers to pass a bill to allow online sports betting in New York. That process has begun, but bills have not progressed as quickly as expected.

Cuomo wants to run online sports betting through the New York Lottery, which again could limit growth. Lawmakers are hoping to create a market similar to New Jersey to provide even more online options.

Barstool Live in Pennsylvania, Michigan

Penn National first launched the Barstool Sports app in Pennsylvania, and it became an instant hit. The recent numbers suggest that Barstool remains a popular sports betting option, but January revenue and handle did decline from previous months.

The Barstool Sports app in Michigan got off to a tremendous start in January as it was one of 10 online sports betting options that launched on the first day. Penn National has secured a deal with the Greektown Casino in Detroit to offer both in-person and online sports betting in that state.

Penn National Looking to Expand

Penn National has already confirmed its plans to launch the Barstool Sports app in Illinois, hopefully before the start of March Madness. The Illinois Gaming Board has not yet given final approval, but there is hope that this will come in early March.

After the launch in Illinois occurs, Penn National is expected to be extremely aggressive for the remainder of 2021. The company has announced its plans to launch the Barstool Sports app in as many as 10 states by the end of the calendar year.

Colorado, Indiana, Iowa, and Virginia are all future targets of Penn National, but other states will be included as well.