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After paying $163 million for a 36% stake in Barstool in 2020, PENN completed the acquisition by purchasing the remaining 64%.
Owned by PENN Entertainment Completed acquisition of Barstool Sports After paying $388 million for the remaining 64 percent of the coveted sports betting brand it doesn’t already own.
Completion of the acquisition is a milestone for PENN, which is still seeking to carve out significant market share in the highly competitive U.S. legal sports betting market.
The deal first kicked off in January 2020, when US casino and entertainment giant PENN Entertainment (then known as Penn National Gaming) announced it had paid $163 million for a 36% stake in Barstool, the wildly popular company. Founded by Dave Portnoy.
PENN’s business has grown impressively since it began incorporating Barstool into its gaming operations Online Sports Betting Sites division, while rebranding its retail business as the Barstool brand.
after initial launch bar stool sports betting In Pennsylvania, where PENN is headquartered, Barstool Sportsbook is now available in 16 states and plans to go live in Massachusetts when the Bay State launches mobile sportsbooks on March 10.
“We are very excited to welcome Barstool Sports fully into the PENN Entertainment family,” Penn Entertainment CEO and President Jay Snowden said in a statement Friday.
“Barstool is a proven, powerful media brand with an authentic voice and a large, loyal audience, providing us with a strong top of the funnel to acquire new clients and organic cross-sell across our growing interactive segment opportunity. Barstool’s combination of theScore’s reach and highly engaged user base creates a massive digital footprint and ecosystem that will help drive Barstool Sportsbook and our unique integrated media and gaming business.”
The Evolution of the Bar Stool
Barstool is uniquely positioned as an integrated sports betting and entertainment site, offering sports and comedy content through a network of more than 100 shows and 90+ sports and media personalities.
In the three years that PENN has rushed to own the sportsbook outright, Barstool has grown its audience by 194%, expanded its customer base to more than 200 million fans, and grown into what PENN calls a “multimedia powerhouse.”
“Barstool Sports is bigger than ever and has become more than I ever dreamed it could be,” says Dave Portnoy, the talkative and controversial founder of Barstool Sports. “I am very grateful to the Barstool team and Stoolies for being with me along the way. I look forward to this new chapter with PENN.”
Not finished
PENN is counting on Barstool to lead its digital division to profitability in FY 2023 as the Barstool Sportsbook platform, currently provided by Kambi, transitions to proprietary technology wholly owned by PENN – a process expected to be completed this summer.
“Based on our experience in Ontario, once we migrate to our tech stack in the U.S. in the third quarter, we’ve identified some real opportunities to build market share and, of course, profit from it,” Penn CEO Snowden on the carrier’s November third-quarter earnings call.
Earlier this month, PENN reports its Penn Interactive division – its digital arm houses it online casino and sports betting operations in the US and under the Barstool Sportsbook brand Score betting In Ontario – recorded first ever profitable quarter.
Penn Interactive reported 4Q EBITDA of $5.2 million despite Jim “Mattress Mack” McIngvale’s massive $10 million payout on his World Series bet on the Houston Astros.
PENN Interactive recorded a profit of $5.2 million and revenue of $208 million in the fourth quarter of 2022, driven largely by theScore Bet’s impressive online performance in online gaming and online sports betting, which continues to outperform Canada’s largest (and only) what to expect from a regulated sports betting market.
“Ontario is now our largest market for sports betting and iCasino in North America, with strong growth and positive trends in our first NFL season, including record growth and December net revenue,” Snowden said .
“Ontario’s impressive numbers are due in part to Penn’s initial integration of Barstool Sportsbook with theScore media applications completed in October, highlighting the strengths of our owned media strategy.”
Once PENN completes the technology migration to its US Barstool sportsbook, the operator will see a corresponding increase in its interactive unit profits. Additionally, using its own technology will give operators greater marketing flexibility through the same proprietary player account technology that has already been boosted at theScore sportsbook in Ontario.
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