PENN Entertainment Acquires Remaining Interest in Barstool Sports for $388 Million

• PENN Entertainment has acquired the remaining 64% stake of Barstool Sports for $388 million
• PENN acquired a 36% stake of Barstool Sports in Feb. 2020
• Barstool Sportsbook is currently live in 15 states

PENN Entertainment has finished what it started, as it announced today it has acquired the remaining 64% stake of Barstool Sports and now fully owns the media company.

PENN previously acquired a 36% stake of Barstool in February 2020 and completed the final acquisition of the remaining stake today for $388 million. In total, PENN acquired all of Barstool Sports for $551 million. The 2020 agreement included a path for PENN to establish full control and ownership of the company.

“We are extremely pleased to welcome Barstool Sports fully into the PENN Entertainment family,” said PENN Entertainment CEO and President Jay Snowden in a release.

Three Years of Positive Growth

Since PENN first invested in Barstool Sports in 2020, the company has grown its audience 194% and recorded total podcast downloads of 1.6 billion. Additionally, Barstool Sports has:

• Delivered over 875,000 videos across social media totaling over 128 billion video views
• Increased ad sales by 160%
• Sold over 5 million units of apparel, licensed products, and accessories

“Barstool Sports is bigger than ever and has become more than I ever dreamed of,” said Dave Portnoy, Founder of Barstool Sports, in a release. “I’m very thankful to the Barstool team and Stoolies who have been along for the ride. I’m looking forward to this next chapter with PENN.”

Barstool Sportsbook launched in September 2020 in Pennsylvania and is now live in 15 states throughout the country. Barstool Sportsbook retail locations have also opened throughout the country since 2020, most recently in Massachusetts at the Plainridge Park Casino.

Barstool Sportsbook is expected to go online in their hometown state when Massachusetts sports betting apps go live on March 10, 2023.

“Barstool, combined with theScore’s reach and highly engaged user base, creates a massive digital footprint and ecosystem that will serve to propel Barstool Sportsbook and our uniquely integrated media and gaming business. Further, the Barstool Sportsbook will greatly benefit from the upcoming migration to our proprietary technology stack, a move that will significantly enhance the overall product offering and deliver meaningful upside,” Snowden said.

It’s a huge moment for Barstool Sports, Erika Ayers, CEO of Barstool sports, said in the release.

Barstool Sports Has Courted Controversy in the Past

PENN Entertainment’s acquisition now leaves the company firmly in control of Barstool Sports, and everything else that comes along with it.

In its home state of Massachusetts, Barstool Sportsbook came under scrutiny from the Massachusetts Gaming Commission (MGC) during its online sports betting license hearing, with several commissioners expressing concerns over the company potentially targeting underage consumers for sports betting and past exploits from Portnoy that were reported on by the New York Times.

Barstool Sportsbook and Penn Sports Interactive were eventually awarded an online sports betting license. As part of the license award, the MGC agreed that Barstool Sports will have to fully cooperate with a thorough background and suitability investigation from the Massachusetts Investigation and Enforcement Bureau after PENN took full control.

Additionally, Barstool Sports will have to take specific measures moving forward that only individuals 21 years of age or older attend any Barstool Sports College Football shows.

PENN Entertainment was also recently fined $250,000 by the Ohio Casino Control Commission for after Barstool Sports violated an Ohio prohibition on advertising targeting a college campus and/or individuals under the age of 21.

The violation, sent to Penn Sports Interactive as part of its Barstool Sportsbook brand, stemmed from a Nov. 15, 2022, Barstool College Football show which took place “on, or targeting the area of, the University of Toledo’s Campus.” During the show, the violation notice alleges that Barstool advertised the Barstool Sportsbook by promoting pre-registration for the sportsbook, including bonus cash and “mycash” rewards for PENN Entertainment casinos. It also said Barstool targeted individuals under the age of 21 in the same way during the show.