Penn National Gaming (PNG) has entered into an exclusive sports wagering and online casino partnership with Barstool Sports, in a deal that will also see the operator acquire a 36% stake in the digital sports media company.
Under the arrangement, PNG will pay $163m (£125.3m/€148.2m) for the stake, securing its position as Barstool’s exclusive gaming partner for up to 40 years.
PNG will fund the purchase with $135m in cash and $28m in share of non-voting convertible preferred stock. After three years, PNG will increase its ownership to approximately 50% with an incremental investment of approximately $62m.
The deal will also give PNG the sole rights to use the Barstool brand for all of its online and retail sports betting and online casino products. The operator has already begun taking over operation of its bricks-and-mortar sportsbooks, and is in the process of developing a mobile product, in partnership with Kambi. This is likely to launch in the third quarter of 2020.
“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,” PNG president and chief executive Jay Snowden said.