A Penn/Portnoy Marriage? Penn National Gaming Rumored to be Betting on Barstool Sports

Barstool Sports, the edgy sports and pop culture blog, could have a suitor in the form of Penn National Gaming, Inc. (NASDAQ:PENN), according to reports swirling late Friday.

New York-based Barstool, founded by the pizza-loving David Portnoy, is owned by The Chernin Group (TCG), a media investment firm. Los Angeles-based TCG acquired a majority stake Barstool in 2016, a deal that tagged the media property at a valuation of $10 million to $15 million. In 2018, the investment firm added to its Barstool position, then valuing the media outlet at $100 million.

Penn National is one of the largest regional gaming companies in the country, with 41 properties across 19 states, and is viewed by some on Wall Street as one of the biggest potential beneficiaries of the sports betting boom sweeping the US.

We’ve been exploring potential opportunities with a number of media companies, but I can’t comment on rumors or speculation,” said Penn Vice President Eric Schippers in a statement to Casino.org.

A request to TCG for comment by Casino.org wasn’t responded to prior to press time. TCG looms large in the internet sports media space, with stakes in The Athletic and The Action Network in addition to Barstool. News broke in November 2019 that TCG was mulling a sale of Portnoy’s enterprise, but talk to that effect has been quiet since then.

Maybe A Logical Fit

Following the 2018 Supreme Court ruling on the Professional and Amateur Sports Protection Act (PASPA), media companies have embraced the idea of partnering with sports wagering firms or gaming operators with significant sportsbook operations.

While the desire to expand its online betting footprint via the acquisition of a property with loyal followers, such as Barstool, Penn National will likely have to evaluate other realities, such as Barstool’s brash reputation.

Last year, Portnoy clashed with Rep. Alexandria Ocasio-Cortez (D-NY) regarding organized labor and took to Twitter, threatening to fire Barstool staffers seeking union representation. Later in the year, Portnoy bashed ESPN, a unit of Walt Disney (NYSE:DIS), alleging the sports giant had a hand in ensuring a college football game in Mobile, Ala. denied Barstool’s sponsorship effort.

Still Tempting

Despite the controversial views Barstool frequently takes and its allegedly “traditionally masculine” culture, the company offers Penn some synergies, including the Barstool Bets brand. That business includes sports gambling podcasts and free contests with real cash prizes involving college and professional games.

Penn operates properties in eight states where sports betting is up and running or soon will be. But off those states, only Indiana, Iowa, Nevada, and Pennsylvania currently have thriving online and mobile sports wagering markets.