Inside Barstool Sports deal with Penn National, sports betting plans - Business Insider

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The inside story of how Barstool Sports landed a deal with casino company Penn National and an eye-popping $450 million valuation

Some companies Barstool met with "cited every failing, every headline, every trip and fall" in Barstool's past, Nardini wrote in aPenn National enters the picture with a clear vision for the deal

On the Penn National side, Kaplowitz, the head of Penn's interactive business, was there, along with Penn National CEO Jay Snowden, its chief strategy officer Chris Rogers, and Scot McClintic, who runs Penn National's sportsbook. "Sometimes it not only makes sense from a strategic and a financial perspective, but in your gut," Kaplowitz said. "It really blossomed from there."

The agreement, which was announced on Wednesday, makes Barstool the face of Penn National's sportsbook. Penn National plans to launch a Barstool Sportsbook at its retail locations in the coming months and a Barstool-branded betting app in August, the company said on an investor call. It can also use the Barstool brand at sports bars and restaurants if it chooses to.

Barstool's key talent, including Nardini, Portnoy, and Katz, signed new employment agreements as part of the deal. The casino company plans to use revenue from those partnerships to help fund its strategy with Barstool. Some states, like New Jersey, allow licensed operators to operate multiple flavors of sportsbooks, called "skins." That means the Barstool-branded sportsbook could coexist with one by a partner company.

 

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