New York-based free-to-play and fantasy sports developer and technology provider Boom Sports its to move into B2C sports betting after striking a market access agreement with Penn National Gaming (PNG).
The agreement will allow Boom Sports to operate mobile sportsbooks and online casino products in up to five US states. It gains first skins in Mississippi and Louisiana, both of which are yet to legalize mobile betting and gaming, and a second skin in Ohio, where a sports betting bill is being considered in the legislature.
Boom will also be granted third-skin access to Missouri and New Mexico, when regulation permits, and will be permitted to pursue access to other states in which PNG operates. Each agreement will be in place for 20 years, beginning from the launch date in each state.
Boom Sports co-founder and chief executive Stephen Murphy described the agreement as “a pivotal moment” in the company’s history.
“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.”
Boom is established as a games developer and technology provider, providing predictions and fantasy sports games for high-profile partners such as NBC Sports and the XFL professional football league. Until it launches a consumer-facing betting product, the business said it would remain focused on B2B activities.
“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.
“This market access deal allows Boom to get our regulated, real-money products in front of consumers directly so we can make sure our partners get the most proven and successful products.”
In lieu of payment for the market access agreement, Boom will instead build a series of free-to-play games for PNG, working with the operator’s partners such as Nascar, and Barstool Sports.
PNG acquired a 36% stake in Barstool in February this year. The agreement, struck in January 2020, gave the operator the right to use the Barstool brand for all online and retail sports betting and online casino products.
Boom has already developed Nascar Finish Line, a game showcasing live and virtual racing to support the stock car racing series’ push into esports. A second product, under the Barstool brand, will follow in the coming months. It will also produce real-money titles for PNG.
“We’re thrilled to take this first step with Penn National Gaming in offering premier free-to-play and real-money products for the US gaming industry,” Murphy said.
“We look forward to establishing ourselves as the premier partner in the US casino industry just as we have done for US sports leagues and media companies.”
In related news, PNG has completed the sale of its Tropicana Las Vegas property to its real estate investment trust Gaming and Leisure Properties (GLPI) for rent credits totalling $307.5m.
GLPI will now conduct a sale process, including the casino and hotel business, for which PNG will receive 75% of net proceeds above $307.5m, should a transaction be agreed within a year. If the process moves into a second year, PNG will receive 50% of proceeds above the sum already paid.