TrackPower Inc. is joining Penn National Gaming, Inc. and eBet Ltd. to establish an integrated broadcasting, telephone and online pari-mutuel wagering company. Upon its completion, Penn National and eBet will each own approximately 26.5 percent of TrackPower.
The aggregation of assets and technologies, as well as the combined registered users, will position TrackPower as one of the leading satellite, telephone and Internet pari-mutuel wagering companies in the world, the company said.
"For the first time in the history of U.S. racing, we will bring together satellite broadcasting, telephone wagering, and Internet wagering operations under a single seamless brand, " said Keith Cullen, slated to be the new TrackPower CEO. "The timing of this venture is ideal as the US pari-mutuel industry is transitioning from a track-based, state-based wagering model to an in-home, national and international model."
Penn National has 40,000 telephone account holders and allows wagering on more than 70 U.S. racetracks. eBet's Internet wagering operations, with 10,000 registered users, covers all New Zealand and many Australian races. TrackPower reaches more than 500,000 households using the Dish Network, and
gives the US market exclusive access to UK races.
Under terms of the agreement, Penn National and eBet will give various assets, technologies, business operations, contracts and management agreements to TrackPower. TrackPower will then merge its existing North American satellite broadcast operations with existing telephone wagering operations of Penn National through an exclusive management contract, for which it will pay Penn.
Additionally, eBet will license its Internet technologies to TrackPower, while retaining ownership for other gaming and wagering applications. TrackPower will issue Penn 18 million common shares, plus warrants to purchase one million new TrackPower shares.