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The Stars Group, Penn National partner for online betting, gaming

The Stars Group Inc. said Aug. 1 said that it signed an agreement with U.S.-based Penn National Gaming Inc. to operate online betting and gaming in U.S. states where Penn owns or runs casino properties.

Under the deal, the Canadian casino and gaming company will have the option to own, operate and brand real-money online sports betting, poker and casino offerings in nine states, which is contingent upon license availability, state law and regulatory approvals.

Its options provide first skin access in Illinois, Indiana, Ohio and Texas, and second skin access in Kansas, New Mexico, Maine, Massachusetts and Michigan, according to a news release.

The Stars Group will pay Penn Gaming a revenue share from the operation of its applicable offerings. It will also pay $12.5 million in cash upfront and potential additional cash payments after it exercises each option.