Penn Entertainment Completes $387 Million Acquisition of Barstool Sports

Barstool Sports and its burgeoning Barstool Sportsbook brand have been acquired by Penn Entertainment in a $387 million deal that is expected to close in February 2023.

Penn Entertainment, which recently rebranded from Penn National Gaming, acquired 36% of Barstool Sports in 2020 for $163 million. Barstool Sportsbook subsequently launched its sports betting app, which is now available in 12 states, including Pennsylvania and New Jersey.

The purchase of the remaining 64% was announced last week.

Barstool Sports founder Dave Portnoy appeared on Fox News on Friday to discuss the completion of the sale.

“First thing I gotta do, is I got to make sure I get the hell out of New York, right?” Portnoy said. “And get down to Florida and establish some residency, so the government can’t steal all my money.”

Portnoy was referring to the fact there is no individual state income tax in Florida.

It’s not clear what role the eccentric Portnoy will have in the company’s future, but he said he wants to take his Penn investments “to the moon.”

“The more Penn goes up, that’s my investment,” Portnoy said. “The other stuff is all fun and games, but Penn is still where most of my net worth is tied up.”

Barstool Sportsbook’s in Expansion Mode

Barstool Sportsbook is currently available in Arizona, Colorado, Iowa, Illinois, Indiana, Louisiana, Michigan, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.

Earlier this month, Penn National released its financial results for the three and six months ending on June 30, 2022. It is expected that the Barstool Sportsbook brand will continue to expand in the coming months. Prospective states include Kansas, Ohio, and Massachusetts.

Penn National Chief Executive Officer and President Jay Snowden said Barstool Sportsbook resonates with a younger audience.

“We are optimistic about our upcoming Barstool branded retail sportsbook launches in Kansas and Ohio where we operate similar market-leading properties bolstered by large casino databases that should augment our omni-channel strategy,” Snowden said. “Additionally, with the passage of sports betting in Massachusetts – the birthplace of Barstool Sports and home to our Plainridge Park Casino – we are excited to add yet another possible retail launch by the end of this year while mobile wagering is anticipated in 2023.”

 

Barstool Sportsbook is unique among commercial sportsbooks as it utilizes a content-heavy approach to help acquire new customers for its sports betting app. A seemingly endless series of podcasts and shows featuring Barstool personalities are produced and consumed by a younger demographic online.

Barstool Sportsbook, to cite one key metric, has 13.9 million followers on Instagram.

Barstool Sportsbook does offer a $1,000 new player bonus and a $10 bonus just for signing up. To receive the new player bonus, users must make their initial deposit and first wager. Barstool refunds the new account in bonus cash up to $1,000 if the first bet loses.