BetMakers and Penn extend global racing content deal

BetMakers Technology Group has confirmed a new long-term agreement with Penn Entertainment that will extend and deepen their cooperation on international horse racing content distribution. The revised three-year contract, beginning on 1 January 2026, ensures continuity after several years of collaboration between the two companies. It also marks an important next step in the evolution of Penn’s global racing strategy and BetMakers’ continued position as a specialist provider of racing technology and distribution solutions.

The agreement includes a mutual option for an additional one-year extension, demonstrating both parties’ confidence in the commercial potential of the partnership. While the original agreement was signed in 2022, its positive performance prompted the two companies to renegotiate on terms intended to strengthen alignment, support long-term growth, and enhance access for international wagering audiences.

This article examines the background of the agreement, the changes introduced in the revised structure, the strategic implications for both organisations, and the wider context of global racing distribution. It also includes an in-depth overview of the roles played by each company in the racing and betting ecosystem, providing readers with a comprehensive understanding of the significance of the new arrangement.

Background of the relationship between BetMakers and Penn Entertainment

BetMakers Technology Group has been working with Penn Entertainment since 2022, when both companies first partnered to support international fixed-odds, exchange, and derivative betting on Penn’s racing content. Penn, which operates several prominent racetracks in the United States, has long sought to expand its reach beyond domestic wagering markets by increasing visibility within the global racing ecosystem.

BetMakers, already active across numerous international betting jurisdictions, became a natural partner due to its established distribution networks, racing technology infrastructure, and demonstrated ability to introduce U.S. racing products into international markets. The partnership has since expanded beyond content distribution to include Host Tote operations, Betline wagering terminals, and digital wagering capabilities provided by BetMakers.

With the expiry of the initial agreement approaching, both parties evaluated performance under the existing arrangement. The FY25 revenue generated through the previous terms exceeded the new minimum guarantee that will apply under the revised structure. This outcome validated the strength of the cooperation and contributed to negotiations resulting in a more flexible and strategically aligned agreement that will begin in 2026.

Key elements of the revised agreement

Continuing exclusive international distribution rights

Under the updated contract, BetMakers will maintain its status as the exclusive international distributor for Penn’s racing content across several key wagering categories. These include:

• Fixed-odds wagering: A format increasingly popular in global markets due to its predictability and appeal to international bettors.
• Derivative betting products: Markets based on secondary elements of a race, enabling a wider variety of wagering opportunities.
• Exchange wagering: A peer-to-peer betting model available in select global jurisdictions where regulations permit.

The continuation of exclusive distribution rights reinforces BetMakers’ role as the primary conduit through which Penn’s racing content reaches international betting operators and wagering platforms.

Enhanced international Tote access and B-pool exclusivity

The revised agreement includes provisions for enhanced gateway access for international Tote customers. This measure is designed to improve the operational pathway for customers who rely on Tote-based wagering pools when engaging with Penn’s racing product.

The agreement also introduces exclusivity for B-pool wagering. B-pools allow international customers to place bets that are merged into betting pools separate from the domestic U.S. pool. This form of wagering supports both liquidity management and market segmentation, allowing international operators to align pooling structures with their preferred betting environments.

These enhanced access mechanisms demonstrate a shared commitment to modernising the experience of international customers and ensuring a transparent and efficient wagering infrastructure.

New revenue-sharing model designed to align incentives

An important structural change in the contract is the introduction of revenue sharing for Penn on income generated above the minimum guarantee. This mechanism is designed to ensure that both parties proportionately benefit from stronger than expected wagering performance.

By linking Penn’s additional earnings to international turnover, the agreement encourages both companies to actively support the growth of Penn’s racing content in global markets. BetMakers benefits from increased gross margins when revenue exceeds the minimum threshold, while Penn gains an additional financial incentive to invest in racing quality, broadcast assets, and international market engagement.

This revised model reflects modern commercial arrangements commonly seen in premium racing distribution partnerships, where rights holders and distributors collaborate closely to achieve mutually beneficial growth.

The importance of international distribution for U.S. racing operators

For U.S. racetracks and racing content producers, international wagering distribution has become increasingly important. The global betting market continues to expand, particularly in regions where regulated online betting is well-established. U.S. racing content, traditionally focused on domestic audiences, has seen rising international interest as more operators seek premium racing products.

Penn Entertainment’s racing portfolio includes content that appeals to a broad spectrum of bettors due to competitive racing schedules and established track reputations. International exposure not only generates direct wagering revenue but also increases the visibility of U.S. racing worldwide.

The partnership with BetMakers is designed to address several industry challenges:

• Operational complexity: International regulatory environments vary significantly, and distributors must ensure compliance across multiple jurisdictions.
• Technology integration: Ensuring that international operators can access content seamlessly requires sophisticated gateway and pooling systems.
• Market penetration: Entering new markets requires expertise, relationships, and marketing capacity that domestic rightsholders may not possess.
• Enhancing liquidity: Larger wagering pools can improve the attractiveness of a racing product, benefiting both bettors and rights holders.

By collaborating with BetMakers, Penn is able to navigate these complexities through a specialised partner with established global capabilities.

Statements from company executives

Jake Henson, Chief Executive Officer of BetMakers, emphasised the importance of the relationship, stating: “Penn Entertainment is a valued and important customer for BetMakers. We are delighted to continue working with them on their international content distribution to deliver returns to their horse racing stakeholders and bring their quality racing content to a wider audience. This amended agreement is a positive step for both parties, and we look forward to a successful and profitable partnership.”

These remarks reflect BetMakers’ strategic focus on long-term cooperative relationships and its ambition to deliver structured growth in international wagering markets. The acknowledgment of “quality racing content” also underlines Penn’s position as an established racing rights holder.

Chris McErlean, Vice President of Racing at Penn Entertainment, added: “We’re pleased to continue our relationship with BetMakers, a proven global leader in racing distribution and technology. Their expertise and international reach have been instrumental in expanding the footprint of our racing content. We look forward to working together to maximise the value of our racing assets and provide new opportunities for our racing stakeholders.”

McErlean’s comments highlight Penn’s satisfaction with the partnership and affirm BetMakers’ role as a global technology and distribution provider.

Strategic implications for BetMakers

The new agreement is significant for BetMakers for several reasons:

Revenue stability through minimum guarantees
The contract provides predictable baseline revenue for the company, while still offering upside potential when revenue exceeds minimum thresholds.

Strengthening its global portfolio
Maintaining exclusive access to a prominent U.S. racing portfolio supports BetMakers’ strategic aim of building a comprehensive suite of international content.

Gross margin improvements
Since FY25 revenue exceeded the new minimum guarantee, BetMakers anticipates improved gross margins under the revised structure.

Reinforcing international operator relationships
BetMakers’ ability to offer premium, exclusive content strengthens its position within the international wagering ecosystem.

The company continues to invest in technology infrastructure to support digital distribution, wagering integration, and data delivery — all essential components of modern racing distribution.

Strategic implications for Penn Entertainment

For Penn, the agreement supports several long-term objectives:

Increased international exposure
Penn’s racing assets gain further visibility across global wagering markets.

Revenue diversification
The new revenue-sharing arrangement provides an additional stream of incremental revenue beyond domestic operations.

Stakeholder value creation
Racing stakeholders, including horse owners, racing participants, and local racing communities, may benefit indirectly from enhanced international turnover.

Access to established international networks
By continuing its relationship with BetMakers, Penn avoids the operational complexities of building its own global distribution infrastructure.

The agreement is structured to safeguard Penn’s commercial interests while expanding its long-term market presence.

Outlook for the international racing and wagering market

The global racing and betting sector has undergone rapid modernisation. Key trends include:

• Growth in regulated online betting markets
• Increased adoption of fixed-odds racing globally
• Rising interest in diversified wagering formats
• Demand for premium racing content across digital channels
• Enhanced regulatory scrutiny requiring robust technology solutions

Partnerships such as the BetMakers–Penn agreement demonstrate the continued importance of strategic alliances in navigating these trends. As racing operators worldwide seek to connect with global audiences, demand for sophisticated technology platforms and secure distribution channels continues to rise.

Conclusion

The renewed agreement between BetMakers Technology Group and Penn Entertainment represents a structured and forward-looking approach to international racing content distribution. By preserving exclusive rights, enhancing Tote access, introducing a more aligned revenue model, and reinforcing cooperation built since 2022, both companies have positioned themselves to capitalise on future opportunities in the global wagering market.

With international demand for high-quality racing products continuing to grow, partnerships of this nature play a critical role in ensuring that stakeholders across the racing ecosystem benefit from increased visibility, improved liquidity, and carefully structured commercial arrangements. Based on statements from both companies, the updated agreement reflects confidence in the long-term value of collaboration and the potential for continued growth well into the next decade.

FAQs

What is the purpose of the new agreement between BetMakers and Penn Entertainment?
The agreement establishes a renewed framework for international distribution of Penn’s racing content from 2026.

How long will the agreement run?
The agreement runs for three years beginning on 1 January 2026, with an option for a one-year extension.

What types of wagering are included in the deal?
The agreement covers fixed-odds wagering, derivative betting products, and exchange wagering.

Does BetMakers have exclusive distribution rights?
Yes, BetMakers remains the exclusive international distributor for the specified wagering formats.

What changes were introduced in the revised structure?
The key change is a revenue-sharing model that allows Penn to benefit from income above the minimum guarantee.

Why is international distribution important to Penn?
International distribution expands the reach of Penn’s racing content and provides additional revenue opportunities.

How does BetMakers benefit from the agreement?
BetMakers gains stable revenue through minimum guarantees and the ability to distribute premium racing content globally.

What does enhanced Tote access mean for customers?
It provides international Tote operators with improved technical access to Penn’s wagering pools.

Why is exclusivity for B-pool wagering significant?
B-pool exclusivity supports international liquidity and allows markets to be structured independently of domestic pools.

Will racing stakeholders benefit from this agreement?
The partnership is structured to support increased global turnover, which may support returns for racing industry stakeholders.