WYOMISSING, PA (Jan. 29, 2020) – Penn National Gaming, Inc. (PENN: Nasdaq) (“Penn National” or the “Company”) announced today that it has entered into an agreement to acquire a 36% interest in Barstool Sports, Inc. (“Barstool Sports”), a leading digital sports media company, for approximately $163 million in cash and convertible preferred stock. Under the agreement, Penn National will be Barstool Sports’ exclusive gaming partner for up to 40 years and have the sole right to utilize the Barstool Sports brand for all of the Company’s online and retail sports betting and iCasino products.
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Jay Snowden, President and Chief Executive Officer of Penn National, commented, “This exciting new partnership with Barstool Sports reflects our strategy to continue evolving from the nation’s largest regional gaming operator, with 41 properties in 19 states, to a best-in-class omni-channel provider of retail and online gaming and sports betting entertainment.”
Mr. Snowden continued, “With its leading digital content, well-known brand and deep roots in sports betting, Barstool Sports is the ideal partner for Penn National and will enable us to attract a new, younger demographic, which will nicely complement our existing customer database. In addition, with 66 million monthly unique visitors, we believe the significant reach of Barstool Sports and loyalty of its audience will lead to meaningful reductions in customer acquisition and promotional costs for our sports betting and online products, significantly enhancing profitability and driving value for our shareholders.”
Jon Kaplowitz, Head of Penn Interactive, commented: “We look forward to introducing our 20 million mychoice customers to the Barstool Sportsbook brand through our retail sportsbooks and our interactive products. Our growing team of product and engineering talent at Penn Interactive is focused on what we anticipate will be a best-in-class sports betting app, which is expected to launch in the third quarter of 2020. Our team is excited to begin collaborating with Barstool Sports on ways to utilize its key talent and leading content to drive audiences to Penn National’s online gaming products and retail locations, as well as to special events and fan experiences.”
Erika Nardini, Chief Executive Officer of Barstool Sports, said, “Barstool Sports is a dynamic content company that has grown into a media juggernaut thanks to some of the best talent and fans in the world. Over the last five years, Barstool Sports has brought its audience, creativity and expertise to the biggest sports betting and DFS operators in the country with great results. The chance to combine our content and fans with Penn National's massive footprint, and to develop a unique and compelling omni-channel approach together, was for us a no brainer.”
Dave Portnoy, Founder of Barstool Sports, added, “This opportunity is a dream of mine and why I started Barstool Sports in the first place. Barstool Sports has a deep sports and gaming history and from the moment we met Jay and the Penn National team we knew this could be an exciting and game changing partnership and we can't wait to get started. I think with our shared vision and goals, we are uniquely positioned to be a leader in this business.”
The much-anticipated Barstool Sportsbook is now live in Pennsylvania. It comes with an army of fans, bombastic “El Presidente” David Portnoy and high hopes from Penn National. After a three-day test period, the Barstool Sportsbook achieved regulatory approval from the Pennsylvania Gaming Control Board. It will now be available 24/7 to. The app is a collaboration with Penn Interactive, risk management company Kambi, and platform provider White Hat Gaming. This is the first launch of the Barstool-branded sportsbook; the plan is to enter other states in the coming months.
Mike Kerns, Partner at TCG, stated, “We’re excited to partner with Penn National on Barstool Sports’ next chapter. We have long believed in the power of Barstool Sports’ unique brand, and with Erika’s leadership and Dave’s vision, the Company has realized remarkable growth over the last four years. We believe the marriage of the Barstool brand and passionate audience with Penn National’s gaming leadership will change the industry.” Casino max app.
Mr. Snowden concluded, “As we continue to execute on our omnichannel strategy, we plan to remain focused on our efforts to de-lever our balance sheet while building on our long-term progress in expanding operating margins at our regional casinos. As previously announced, our goal is to achieve a lease-adjusted net leverage level of 5.0x by the end of 2020.”
Transaction Details
Penn National’s initial investment for 36% of the equity of Barstool Sports is comprised of approximately $135 million in cash and $28 million in shares of non-voting convertible preferred stock. After three years, Penn National will increase its ownership to approximately 50% with an incremental investment of approximately $62 million, consistent with the implied valuation at the time of the initial purchase.
Under the terms of the agreement, Penn National has immediately exercisable call rights, and the existing Barstool Sports shareholders have put rights exercisable beginning three years from closing, for the remaining Barstool Sports shares based on a fair market value calculation to be performed at the time of exercise. Penn National also has the option to bring in another partner who would acquire a portion of Penn National’s shares of Barstool Sports. Penn National will have customary governance rights, including initially two seats on Barstool Sports’ seven-member board of directors.
Following the close of the transaction, entities affiliated with The Chernin Group, which previously owned approximately 60% of Barstool Sports, will own 36% of Barstool Sports, and the remaining 28% will be held by Barstool Sports’ employees, including Mr. Portnoy and Ms. Nardini.
The Company expects to close the transaction in the first quarter of 2020, subject to customary closing conditions set forth in the purchase agreement.
Penn National Gaming will host an analyst day in June to discuss the Barstool Sports transaction further and expand upon the Company’s omni-channel vision for the convergence of sports betting and casino gaming.
Conference Call and Webcast
Penn National will host a conference call and simultaneous webcast today, Wednesday, January 29, 2020 at 8:00 a.m. ET to review the Barstool Sports transaction, share the Company’s vision for sports betting and iGaming, and host a question and answer session. To access the conference call, interested parties may dial www.pngaming.com. During the conference call and webcast, management will review a presentation which can be accessed at www.pngaming.com. A webcast replay will be available for 90 days following the live event at www.pngaming.com. Please call five minutes in advance to ensure that you are connected. Questions and answers will be taken only from participants on the conference call. For the webcast, please allow 15 minutes to register, download and install any necessary software.
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About Penn National Gaming
Penn National Gaming owns, operates or has ownership interests in gaming and racing facilities and video gaming terminal operations with a focus on slot machine entertainment. The Company operates 41 facilities in 19 jurisdictions. In total, Penn National Gaming’s facilities feature approximately 50,500 gaming machines, 1,300 table games and 8,800 hotel rooms. The Company also offers social online gaming through Penn Interactive and has a leading customer loyalty program with over five million active customers.
About Barstool Sports
Founded in 2003 by David Portnoy, Barstool Sports is a leading digital sports, entertainment and media platform that delivers original content across blogs, podcasts, radio, video and social, supported by nearly 70 dedicated personalities. It benefits from approximately 66 million monthly unique visitors, including an estimated 48% of males and 44% of females in the Millennial and Generation X generations across the United States. In 2019, Barstool Sports grew by approximately 65%, delivering nearly $100 million in revenue from digital and audio advertising, ecommerce, events, licensing and subscription.
About The Chernin Group
The Chernin Group was founded as a holding company to acquire and operate direct-to-consumer brands in media and tech. After a decade building consumer businesses, The Chernin Group management team formed TCG – a multi-stage investment firm based in Los Angeles and San Francisco. TCG’s portfolio includes digital media, commerce, marketplaces, sports, gaming, consumer finance, and health and wellness brands and platforms.
Forward-looking Statements
All statements included in this press release, other than historical information or statements of historical fact, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements regarding the Company’s investment in Barstool Sports and the related transactions, the Company’s online strategy, the potential benefits of the investment in Barstool Sports, including the benefits for the Company’s online and retail sports betting and iCasino products, the expected financial returns from the transaction with Barstool Sports, including reductions in customer acquisition and promotional costs, the projected closing date of the investment in Barstool Sports, the Company’s ability to repay debt in 2020, are subject to risks, uncertainties and changes in circumstances that could significantly affect the Company’s future financial results and business. Accordingly, Penn National cautions that the forward-looking statements contained herein are qualified by important factors that could cause actual results to differ materially from those reflected by such statements. Such factors include, but are not limited to: (a) the Company may not be able to achieve the expected financial returns due to fees, costs and taxes in connection with the Company’s roll out of its own online and retail sports books and iCasino products; (b) states may not pass legislation approving online and retail sports books and iCasino products; (c) the closing of the transaction with Barstool may be delayed or may not occur at all, for reasons beyond our control; (d) the ability to satisfy the closing conditions to the transaction in a timely basis or at all; (e) the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976; (f) potential adverse reactions or changes to business or regulatory relationships resulting from the announcement or completion of the transaction; (g) the outcome of any legal proceedings that may be instituted against the Company, Barstool Sports or their respective directors, officers or employees; (h) the ability of the Company or Barstool Sports to retain and hire key personnel; (i) the impact of new or changes in current laws, regulations, rules or other industry standards; (j) the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the Company and Barstool Sports to terminate any of the transaction agreements between the companies, and (j) other risks, including those as may be detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). For more information on the potential factors that could affect the Company’s financial results and business, review the Company’s filings with the SEC, including, but not limited to, its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K. The Company does not intend to update publicly any forward-looking statements except as required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release may not occur.
CONTACTS:
General Media Inquiries:
Eric Schippers, Sr. Vice President, Public Affairs
Penn National Gaming
Kelly Martin, Head of Talent Relations and Communications
Barstool Sports
Kelly.Martin@barstoolsports.com
Financial Media and Analyst Inquiries:
Justin Sebastiano, Sr. Vice President of Finance and Treasurer
Penn National Gaming
Myvegas coupons. Joseph N. Jaffoni, Richard Land
JCIR
212-835-8500 or penn@jcir.com
The notorious sports content site Barstool Sports and Penn National Gaming made big news earlier this year when they announced a blockbuster deal to bring the Barstool brand into the nascent US sportsbook scene. Penn National acquired a significant piece of Barstool Sports, with the intention of Barstool Sportsbook opening for business before the start of the 2020 NFL season. We suggest trying one of these top Sportsbooks.
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While the platform wasn’t able to launch before the start of the NFL season, they did finally did launch a Barstool Sportsbook in Pennsylvania toward the middle of Septemeber, 2020. This leaves plenty of time for some NFL gaming fun!
Here is a review of everything you can expect from Barstool Sportsbook PA and the company’s plans for expansion throughout the US.
Barstool Sportsbook welcome bonus
The welcome bonus for Barstool Sportsbook is finally settled. After much speculation about what the initial bonus might entail, Barstool decided to offer two of the most popular promotions, creating a welcome bonus with both a no deposit bonus and a risk free bet!
Here are the details:
For the no deposit bonus, you will receive $10 free just for signing up! To spice up the deal even further, once you make your first deposit to the platform and make your first wager, you will be eligible for a risk free bet of 100% up to $500! This means that if your first bet loses, you will be reimbersed 100% of the value of your bet, up to $500 to make another bet.
Barstool Sportsbook promo code
| Online Sportsbook | Barstool Sportsbook |
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Barstool Sports and Penn National Gaming
Barstool Sports has entered into a partnership with Penn National Gaming whereby the casino and racetrack operator purchased a 36% share of the business. The buying price is $163 million, which equates to Barstool Sports having a value of $450 million. The investment for the acquisition comes in the form of about $135 million in cash and $28 million as non-voting convertible preferred stock. Within terms of the deal, Penn National will be Barstool Sports’ exclusive gaming partner, which allows the use of its online and retail sports betting brand.
The partnership will develop further over the next three years. Penn National Gaming will eventually acquire about a half share of Barstool Sports by 2023. The overall investment will increase by $62 million, which falls in line with the implied valuation of Barstool Sports at the current time. The deal could ultimately see Penn National Gaming have full control of Barstool Sports and be the full owner. Penn National now has exclusive full Barstool Sports gaming rights for up to 40 years from a deal that is significant in the overall development of legal sports bettingin the United States.
Penn National Gaming Buys Barstool
Company background — Barstool Sports
Barstool Sports was originally a sports blog that attracted some controversy, but its image has changed significantly in recent years. The deal with Penn National Gaming values Barstool Sports at $450 million. The company has made a major move by entering into the legal sports betting industry. It does have existing partnerships with FanDuel and SportsBet and others, but the creation of a sportsbook and betting app is a new development.
Company background — Penn National Gaming
Penn National Gaming is already a significant player in sports betting across the United States. The company operates retail wagering in states that have legal sports betting, including the following: Illinois, Indiana, Iowa, Michigan, Mississippi, and Nevada, in addition to their online sportsbook and retail sportsbook that just opened in Pennsylvania. The core products are casinos and racetracks, but Penn National has made significant acquisitions in online sports betting in recent years following the repeal of the Professional and Amateur Sports Protection Act (1992) in May 2018
Jay Snowden, president, and CEO of Penn National highlighted the major benefits of this deal with Barstool Sports. He said:
Barstool Gaming App
“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 customer interest and increased engagement between Barstool and our own national platform of 41 properties in 19 states. Our two teams have hit the ground running and are working on plans to roll out the Barstool Sportsbook brand through both our retail sportsbooks and interactive products.”
Barstool Sports launch — App, sportsbook and retail
Although they hoped to launch the first Barstool Sportsbook in the US by August 2020, the Pennsylvania sportsbook did end up launching in September 2020.
However, this is only the beginning of the plans the platform has to start opening both online and retail sportsbooks throughout the United States. The complete deal will create a significant omnichannel provider of sports betting entertainment. Sitting alongside Penn National’s stake in Barstool Sports is the remainder in the hands of the current owners and current and former employees. There are also additional purchasing options over the next three years. The deal brings together a trusted and recognized brand and a leading gaming operator.
Now that Pensylvainia is up and running, Barstool Sportsbook is setting its sights on a number of states, including Colorado. Voters in the state have approved plans for legal sports betting. The margin was 756,720 (51.5%) in favor and 723,665 (48.5%) against the move. Industry experts have suggested that such votes indicate there is an interest in sports betting in the United States, which has prompted the deal between Barstool Sports and Penn National Gaming.
The sports betting software is provided by the Kambi Group, which became Penn National’s exclusive operator in August 2019. Since 2014, Kambi has supplied sports betting services to operators that are licensed to provide gaming products. The software functions include odds compiling and risk management. There has been speculation that the first retail location could be Penn’s Hollywood Casino at Charles Town in West Virginia.
Barstool Sportsbook new player bonus – Terms & conditions
Here are a few of the different terms and conditions specific to the Barstool Sportsbook PA platform:
- New customers only and existing customers are not eligible.
- Players must be 21 or older.
- Qualifying initial deposit.
- Odds restrictions and wagering requirements will apply.
- Free bets expire after 365 days
- General Barstool Sports terms and conditions apply.
Barstool Sports 2020 promos
Right now, Barstool Sportsbook PA is focusing on signup bonuses but as time goes on, the platform is sure to introduce plenty of promos related to football, hockey, basketball, and baseball.
Here is a sample of current promos with existing US sports betting operators:
- NBA bets paid out early if the backed team led by a specific number of points.
- NHL boosted odds for winning parlays.
- NFLMonday Night Football bonuses.
- MLB free bets for specific games.
While it is still too early to tell, the most popular betting categories with Barstool Sports is expected to be the four main North American professional and amateur sports. However, like other sportsbooks, it is likely that there wil also be promos that encompass the thrill of global sports, such as soccer, boxing, tennis, and golf.
How to sign up for an account at Barstool Sports
The signup process for Barstool Sportsbook is typical. Here is the step-by-step guide to creating a new account with online sportsbook :
- Visit the homepage of the Barstool Sports site.
- Click the registration button.
- Enter personal, contact, and account details.
- Specify a username and password.
- Populate the required fields.
- Verify you are 21 or older.
- Confirm acceptance of the Barstool Sports terms and conditions.
- Create a new account.
Barstool Sports betting app
As a mobile customer, you can download the sportsbook app with ease. Android and Apple users can install the operator’s website on their devices, as long as the browser is mobile-optimized. The Barstool Sports iOS app should be downloadable from the Apple App Store, but Android users will have to install the website release.
The Barstool Sports app has all the functions of the website. Therefore, Android and iOS users can claim any sign-up offer when registering and take advantage of the package of dynamic promotions for current players. The Barstool Sports app is well-designed, visually appealing, and easy to navigate.
Barstool Sports betting options
Barstool Sports will be launching a conventional fixed-odds online sportsbook. The model should replicate existing services, and that means a familiar range of sports and betting options. It is safe to assume that you will be able to select from a comprehensive range of betting markets for football, hockey, baseball, and basketball. The site is a US-facing operation, but there should be a number of global sports categories. We can anticipate full coverage for soccer, boxing, tennis, and golf. In addition to the regular sports, Barstool Sports players will probably be able to place wagers on politics, esports, and TV and entertainment novelty markets.
Thus, the operator provides a wide range of betting options, which include:
Types of bets with Barstool Sports
Barstool Sports offers the three main types of bets that are common throughout the sportsbook gaming community for players who reside in the United States:
Pregame
Penn Gaming And Barstool
Barstool Sports offers comprehensive range of pregame markets across potentially up to 30 sports. How this works is the operator will release the odds a few days before a fixture, and they will be subject to change. There will be minimum and maximum bets, depending on the sport and the importance of an event. Pregame betting will be suspended once the game has started.
In-play
In-play wagering is an important element of the Barstool Sports sportsbook. You can place bets in a number of markets after a game starts across all the popular US betting sports. The odds are updated during the game but suspended after a key event.
Additionally, there is a Cash Out option available for select events. The cash-out value depends on the original bet and odds at the time of the request.
Futures
Futures betting is popular with bettors in the United States, and Barstool Sports offers many options, including the winners of divisions, conferences, and championships in the main US betting sports as well as in soccer, tennis, and golf.
How to place a bet with Barstool Sports
The bet placement process with Barstool Sports is quick and easy and involve locating a line or number of lines, selecting one or more, and then specifying the type of bet and stake on a bet slip. Once the bet has been accepted, your account balance will be updated accordingly.
Barstool Sports deposit and withdrawal options
Barstool Sportsbook offers a number of banking options:
- Debit and credit cards
- Bank transfer
- PayNearMe stores
- Barstool Sportsbook Play+
- eChecks
Most transactions will be free, but some providers may issue a nominal charge, especially if using a credit or debit card. Deposits will mainly be immediate, but withdrawals will be subject to delays, depending on the method.
Customer service with Barstool Sports
Barstool Sports offers a lot of customer service options to accommodate the communication method that the individual player is most comfortable with using:
- Phone
- Postal address
- Help facility
- Live chat
- Social media accounts
- Blogs
- Feedback
Additionally, Barstool Sportsbook is also commitment to responsible gambling, with links to support bodies and a raft of control measures that can be adopted by problem gamblers.
Closing comments about Barstool Sports
Barstool Sportsbook uses the association with Penn Gaming National and the Kambi Group to offer customers across the country a good destination for sports betting. The operation does not have any major flaws and provides effective pregame and in-play interfaces. The service includes a fully functional mobile app that offers all the features of the website. Overall, this omnichannel operation brings is built upon the strengths and experience of Barstool Sports and Penn National Gaming to produce a good addition to the US sports betting market.