Penn National Gaming made waves a few years ago when it agreed to take a 36 percent ownership stake in Barstool Sports. That deal included language that allowed Penn National to take an even bigger stake at some point, and it appears as if that time is coming.
Jay Snowden is the CEO of Penn National Gaming and, when speaking to investors, made it clear that owning Barstool Sports is something the company plans to do. Barstool is a company that was founded back in 2003 by Dave Portnoy, but it has seen massive growth and success since that time.
The revenue for Barstool has grown by more than 150% in the last two years, and Penn National Gaming has played a key role in that. Even though Barstool is still a sports and entertainment media company, its biggest focus is now on its sportsbook.
It’s unclear when Penn National plans to take full ownership over Barstool or how much additional money that would cost the company. Portnoy continues to be in the middle of sexual assault allegations, and that could also play a role in these negotiations that could be coming.
Barstool Leading in Louisiana
Penn National owns five casino properties in the state of Louisiana, and each one is now outfitted with a Barstool Sportsbook. This form of sports betting was all that was available in 2021, but online sportsbooks have since launched.
In the third quarter of 2021, Barstool had 53% of the total gross gaming revenue in Louisiana out of all of the retail sportsbooks. The Barstool Sportsbook app is now available in Louisiana as well, making that the 12th state in which it is offered.
theScore Making a Move?
Penn National also owns theScore, and it is looking to bring that into the United States more in the coming months as well. There are currently four states that have theScoreBet as an online sports betting option, but Penn National is not looking to enter into any additional states.
Instead of launching theScoreBet in other states, Penn will be looking to integrate that into current Barstool Sportsbooks that are already operational. Canada is looking to launch online sports wagering in April, and that is where theScoreBet will have its target.
Canada could emerge as a massive online sports betting market, especially since this will be a new option for bettors. Snowden did not mention how the company planned to integrate theScoreBet into Barstool.
Penn National Continues to Make Money
The biggest reason that Penn National is looking for a bigger stake in Barstool is that the company continues to make money. During this earnings call, Snowden pointed out how successful the company has been, and adding Barstool could lead to even bigger growth.
Penn National posted a net income of $44.8 million during the fourth quarter of 2021 after having a revenue of $1.6 billion. With the massive growth of the sports betting industry in the United States, Penn could be looking to capitalize in a big way.
