Penn National Gaming (PNG), an American operator of casinos and racetracks based in Wyomissing, Pennsylvania, has announced that it has entered into an exclusive sports wagering and online casino partnership with Barstool Sports that will also see it acquire a 36% stake in the digital sports media company. Barstool Sports produces blogs, podcasts, social media and live events.
In terms of the agreement, PNG will pay an amount of $135 million in cash and $28 million in nonvoting convertible preferred stock in a deal that values Barstool Sports at $450 million. This will secure PNG’s position as Barstool’s exclusive gaming partner for a period of up to 40 years.
After three years, PNG will increase its ownership to approximately 50% with an incremental investment of approximately $62 million.
PNG is endeavoring to convert some of Barstool Sports’ audience of roughly 66 million into customers of its casinos and an online sports betting app that it is developing, in partnership with Kami. This is scheduled to launch in the third quarter of this year.
The new deal will give PNG the sole rights to use the Barstool brand for all its online and retail sports betting and online casino products.
Jay Snowden, the President and Chief Executive Officer at Penn National Gaming, commented on the agreement by saying that 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 them to attract a new, younger demographic, which will nicely complement their existing customer database.