Rush Street Interactive Teams up with Penn National to Enter Three New States
February 22, 2020 Jovan Paunovic
Penn National Gaming, the casino and racetrack operator has confirmed the acquisition of 36 per cent interest in Barstool Sports for $163m.
The sports brand is valued at $450m, and the purchase price for 36 per cent is comprised of approximately $135m in cash and $28m in non-voting convertible preferred stock.
The acquisition will make Penn Barstool’s exclusive gaming partner and will have the sole right to utilize the brand for all of its online and retail sports betting and iGaming products.
Penn National, which recently signed on with Nascar, has plans to increase ownership in Barstool Sports to approximately 50 per cent after three years, which entails an incremental investment of approximately $62m. consistent with the implied valuation at the time of the initial purchase, and has a path to establish control and full ownership of Barstool Sports.
Once the deal was closed, the company, which is also expecting to debut on PA ground, designated Chris Rogers, senior vice president and chief strategy officer and Jon Kaplowitz as senior vice president of interactive gaming to Barstool’s board of directors.
Jay Snowden, president and CEO of Penn, commented: “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.”
“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 our interactive products.”
“In addition, our interactive product development team is continuing its work towards the launch of our new sports betting app which is planned for August. Penn National shares the excitement of Dave Portnoy, Erika Nardini and the entire team at Barstool Sports and looks forward to creating what will be the industry’s best-in-class omni-channel provider of retail and online gaming and sports betting entertainment.”
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Penn National owns, operates or has ownership interests in gaming and racing facilities. In the area of the video gaming terminal operations, its focus lays on slot entertainment.
With a total of 42 facilities, with the latest acquisition of Greektown Casino, the company now operates in 19 jurisdictions. It facilitates around 51,000 gaming machines, over 1,300 table games and 9,000 hotel rooms. Financial report Q4 of 2018 reveals a hugе leap in the brand’s revenue and according to the company’s data, the numbers are rising this year as well.
Source:
“Penn National Gaming integrates Barstool Sports”, Clark Schultz, seekingalpha.com, February 20, 2020.