Company Pa. Signs Deal With Barstool Sports Ringing Nasdaq Closing Bell
Earlier this year, Penn National Gaming, the large Berks County-based gaming company that owns the Hollywood Casino at Penn National Race Course in East Hanover Township and off-track betting facilities in Lancaster and County of York bought a 36% stake in Barstool Sports, for approximately $163 million.
And last week, the Berks County gaming giant and Barstool Sports celebrated the deal by ring the closing bell at Nasdaq in New York.
Jay Snowden, president and CEO of Penn National Gaming, told the Nasdaq audience that Penn National had met with every media company in the country, but when he met with Barstool Sports officials, he knew the partnership would work.
“When the federal sports ban was overturned by the United States Supreme Court in May 2018, we knew the industry would be changed forever,” Snowden said. “We also knew because of our position within the industry… that we had a unique opportunity and an opportunity that was a leadership position to create a revolution in the industry. The one thing we knew we were missing, as sports betting is legalized state by state, was a brand to lead with and reach a very loyal following of sports enthusiasts.
Penn National creates Barstool-branded sports betting as well as a Barstool betting app.
Under the agreement, Penn National will be Barstool Sports’ exclusive gaming partner for 40 years and will have the exclusive right to use the Barstool Sports brand for all of the company’s online and retail sports betting and iCasino products. Penn National will pay an additional $62 million over three years, increasing its stake to 50% with the option to purchase majority ownership for an amount to be determined at the time.
Penn National Gaming has 41 facilities in 19 states. Penn National Gaming facilities include approximately 50,500 gaming machines, 1,300 table games and 8,800 hotel rooms. Barstool Sports is a sports, entertainment and media platform that was founded in 2003 by Dave Portney in his parents’ basement.
Ringing the bell were Snowden and members of Penn National’s leadership team as well as Portnoy, Barstool CEO Erika Nardini, and other members of the Barstool team.
The ringing of the honor bell came near the end of a terrible week for the stock market as well as Penn National shares, which started the week at $36 and fell 17.8% to $29.57 at the end of the day on Friday. The stock continued to fall this week, closing Tuesday at $26.05.
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