Barstool Online Sportsbook
Barstool Sportsbook: coming soon to a state near you. On January 29th, 2020, Penn National Gaming announced that it had reached an agreement to acquire 36% of Barstool Sports, Inc. for $163 million. As a part of the agreement, Penn National will be Barstool’s exclusive gaming partner for up to 40 years. Penn National will rely on Barstool’s elite content and reach to drive traffic towards its new online and retail gaming locations.
The Future of Barstool Sportsbook
Now that the deal is done, what does the future hold for Barstool Sportsbook? We expect both Barstool branded retail and online sportsbooks to go live within months. Penn National already holds retail properties in many states that have authorized sports betting, including:
- New Jersey
- West Virginia
Penn National’s Hollywood branded casinos throughout the country are currently advertising the new agreement. In time, many of these retail sportsbook locations may rebrand under the Barstool Sportsbook name. A “best-in-class” sportsbook app is expected to launch by third quarter 2020, and will run on the Kambi platform.
In addition, with the rights to Barstool branded casino products also included in the deal, there will be Barstool Online Casinos as early as 2021.
Founded in 2003, Barstool Sports has built an enormous community through both sports and pop-culture based content. It offers numerous blogs, podcasts, videos, radio, and social media based content with dozens of dedicated personalities. Barstool currently has a reach of more than 65 million unique visitors each month, including an estimated 48% of men, and 44% of women that are categorized as either Millennials or Generation X.
Barstool is one of the fastest growing brands in sports media. The Chernin Group invested in Barstool Sports in 2018, giving the company a $100 million valuation. Now just two years on, Penn National’s recent acquisition ($163M for 36%) has increased its value to an impressive $450 million.
Penn National Gaming
Penn National Gaming is one of the industry’s largest operators. It currently controls more than 40 facilities across the country including 50,000 gaming machines, 1,300 table games, and 8,000 hotel rooms. Penn National has properties all over the country from Nevada, to Maine, and down to Florida. Its mychoice rewards program currently boasts more than 20 million customers.
Penn National is going after new demographics. Barstool is known for its dedicated fanbase, referred to as Stoolies, that do justice to the ‘fanatic’ name. Generally speaking the Stoolies are made up of a younger, male population. The Barstool audience breaks down as follows:
- 21 – 34: 38%
- 35 – 44: 27%
- 45 – 54: 18%
- 55 – 64: 9%
- 65+: 4%
Penn National has had years of success with casino games, which traditionally attract older players. In contrast, sports gambling tends to draw a younger crowd. Internal data and customer survey results determined that more than 60% of Barstool users bet on sports, with most doing so on a weekly basis. Acquiring the Barstool brand, which already possesses a built in user base that is both young, and loves to bet sports, could be a stroke of genius. Keep an eye out for a Barstool Sportsbook in your area.
Transaction terms of the new Barstool Sports / Penn National partnership include:
- Penn National acquires a 36% interest in Barstool Sports, Inc. for $163 million.
- The $163 million is paid with $135 million in cash, $28 million in non-voting convertible preferred stock.
- In three years Penn National’s ownership will increase to 50% with an incremental payment of $62 million.
- Penn National gains the exclusive right to use the Barstool Sports brand for its company’s online and brick-and-mortar casino and sports betting products.
- The Chernin Group’s stake in the company is reduced from 60% to 36%.
- 28% of Barstool remains in the hands of its employees, including company founder David Portnoy.
- Penn National will possess 2 of the 7 seats on the Barstool Board.
Other Agreements Remain Intact
Penn National Gaming is no stranger to the online casino and sports betting space, having already established partnerships with operators like DraftKings, FOX Bet, theScore, and PointsBet. All of those agreements will be honored, as Penn National saved its main license in each state. Enter Barstool, which will be the company’s primary brand moving forward.
We will be sure to update this page accordingly as new details emerge regarding Barstool Sportsbook and its status in the market.