Penn National Gaming, Inc. and American Digital Communications Inc. have worked out a deal in which Penn National will serve as the exclusive U.S. wagering hub operator for the TrackPower direct-to-home pari-mutuel digital satellite service.
The contemplated agreement is for a minimum of five years, with a five-year renewal option. While specific financial terms of the agreement were not disclosed, American Digital will receive payment for the TrackPower service based upon the volume of wagering business generated.
TrackPower is a subscriber-based service providing live horseracing video feeds from participating race tracks to its paying subscribers throughout the United States and the Caribbean. Racetracks providing feeds to the service include Penn National's three race courses--Penn National Race Course, Pocono Downs Racetrack and Charles Town Races--as well as California's Santa Anita Park and others. The service is provided through direct-to-home satellite transmissions over two channels via Loral's SkyVista satellite system. Two additional channels are expected to be added to the service by June 1999.
For the existing Penn National telephone account betting customers, the TrackPower service can provide a new dimension of video enjoyment to their horse racing experience. For the TrackPower subscribers, the Penn National wagering hub provides an established and convenient on line system for placing their wagers.
"Penn National's role as the wagering hub operator for TrackPower provides an exciting new
revenue center for our company while offering Penn National a national reach that will grow as TrackPower expands its base of subscribers and racetrack feeds," Penn National CEO Peter M. Carlino said. "We expect to work closely with TrackPower to provide a state of the art service that also looks to incorporate distribution technologies including the Internet as well as other broadband media."
"Penn National, an acknowledged leader in pari-mutuel gaming with tens of thousands of existing telephone account subscribers, has an unrivaled wealth of industry experience, management talent and operating skill," American Digital Chairman and CEO John G. Simmonds added. "The Penn National agreement represents a significant new revenue stream for us. We are pleased to join forces with them to provide the best in pari-mutuel racing and wagering, accessible across the country."
Penn National owns, operates and conducts wagering at its Penn National Race Course and Pocono Downs Racetrack, and at its ten off-track wagering (OTW) facilities in Allentown, Erie, Reading, Chambersburg, York, Williamsport, Lancaster, Hazleton, Carbondale and Johnstown, Pennsylvania. The company also owns and operates Charles Town Races, a live thoroughbred racing facility in Jefferson County, West Virginia, which also features 935 slot machines.
Penn National's exclusive hub operation also includes other distribution media including the Internet, cable television or broadcast television.
Through TrackPower International Inc., American Digital delivers live horseracing video to subscribers throughout the U.S., including Alaska, Hawaii, and Puerto Rico. It uses the Skynet Direct Platform to broadcast the TrackPower service as a niche-programming package on EchoStar Communications Corporation's SkyVistaTM DTH television service.