Penn National Gaming Partners With Barstool Sports to Expand to Millennial MarketLegal
Penn National Gaming has come to an agreement paying $163 million for a 36% acquisition of Barstool Sports. This transaction was aimed to gain exposure to the company’s 66 million users showing interest and usage of sports betting. The move is following the recent trend of multiple casinos following the mold of partnering with online platforms to grow their financial gain from the gaming community.
Penn National has watched the monetary gain from other casino operators collaborating with different platforms throughout the state, fueling their decision to fuse a partnership with a tech form. The 40 year deal includes a option to increase the amount of Penn National ownership of the company to 50%, and eventually gaining full ownership in the distant future.
Barstool sports currently has over 66 million monthly visitors, with an average age range 10 years younger than the current Penn National customer database. This pans out to become a huge database and marketing tool for both entities. Barstool also has deals in place with FanDuel and DraftKings, branching their brand to other sports betting platforms as well.
Partnership for the Two Companies
Jay Snowden, President and CEO, along with Penn National’s senior management team, will join Barstool’s Founder Dave Portnoy, CEO Erika Nardini, and their team in a closing bell ringing ceremony from 3:50 to 4pm EST.
“We look forward to ringing the closing bell to help commemorate the successful closing our acquisition of a 36% interest in Barstool Sports,” said Snowden. “This investment represents a significant milestone in our company’s ongoing strategy to evolve from the nation’s largest regional gaming operator to a best-in-class provider of retail and online gaming and sports betting entertainment.
“Since announcing our groundbreaking partnership with Barstool at the end of January, we have seen first-hand the power of the Barstool brand to generate significant consumer interest and increased engagement between Barstool, their loyal audience of ‘Stoolies’ and our own nationwide platform of 41 properties in 19 states.”
Penn National has the sole rights to incorporate the Barstool brand for online gaming, retail sports betting, and icasino products. The expectation of this deal is focused on Millennials, as well as pulling gamers from a large magnitude of competitive brands. The question we can ask is if the move is to have a true crossover in sports betting revenue, or is it just buying an empty calorie database and a strong marketing tool.