The agreement gives Penn a 20-year deal and 'second skin' access to the state of New York. Barstool Sportsbook is now operational in Pennsylvania and Michigan. The company plans to have online. Penn National Gaming CEO Jay Snowden told FOX Business' Liz Claman that the company plans to launch its minority-owned online gambling platform, the Barstool Sportsbook app, in every state where. Penn National Opening Three Barstool Sportsbooks in Michigan and Indiana. Posted on: December 22, 2020, 02:13h. Last updated on: December 22, 2020, 03:21h.
Penn National Gaming has ended the year on a very high note through the launch of three Barstool Sportsbooks. These launches are a great milestone in the Pennsylvania-based gaming company's very ambitious expansion plans. Sports bettors in both states can therefore look forward to some very robust sports betting services going forward.
Speaking on the launches, Penn National's Senior Vice President of Regional Operations Rafael Verde pointed out that 'the new designs incorporate the spirit of the Barstool Sports brand'. As such, their customer will be treated to very unique sports betting and dining experiences.
For anyone who is itching to try out the new Barstool Sportsbook offerings, they are based at Greektown Casino Hotel in Detroit, Michigan, Holly Casino Lawrenceburg in Indiana, and Ameristar East Chicago Casino & Hotel.
Just in Time
Besides letting the company kick off 2021 on a rather high note, the new launches are also pretty timely as they come as operational restrictions loosen across the United States. The Michigan launch, for instance, came just as the state's three commercial casinos reopened following the state-ordered three-week shutdown. This, like most other things this year, was a result of health and safety concerns due to the coronavirus pandemic.
The extension of the company's footprint in both states is not too surprising especially considering that it already had a presence in both states. Penn National Gaming already had two casinos in Indiana and some presence in Michigan.
It also very helpful that the gaming and hospitality operator currently owns a chunky 36 percent stake in Barstool Sports. Ventures into any other regulated market across the United States are thus bound to be much easier to pull off.
Maryland Next in Line
One of the other regulated gaming markets that Penn National Gaming currently has its sights set on include Maryland. The company has already entered into a definitive agreement with Gaming and Leisure Properties, Inc. to acquire the operations of Hollywood Casino Perryville, MD. This acquisition deal is estimated to be worth upwards of $3.1 million in cash. As expected, this is still subject to working capital adjustments.
Maryland just recently legalized online gambling after the overwhelming passage of Question 2 on Election Day. It is now expected to be a very lucrative online gambling space, one that Penn National Gaming will certainly not be willing to miss out on. Give the company's track record in other states including Pennsylvania, its success in Maryland is almost guaranteed.
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Penn National Gaming's Barstool Sports brand seems to have shrugged off the devastating impacts of COVID-19 in 2020 and is upbeat heading into 2021. Despite a net loss of $669 million in 2020, there was no shortage of positive signs for Penn National or optimism from their management team about Barstool Sportsbook heading deeper into this year.
It was just over a year ago that Penn National purchased a 36% interest in Barstool Sports and married two Heavyweight brands in the sports industry. Since then, Barstool has become an important and successful entity in their existing states, Pennsylvania and Michigan with an eye on rapid expansion in the next 12 months.
Penn National Misses Estimates… but Not Because of Barstool
Penn National last weeks, came out with its financials for Quarter 4 and not-all-that-surprisingly, it missed estimates albeit slightly. Q4 total revenues came in at $1.03 billion, off of the $1.09 billion estimate before commencement of the quarter.
The main reason for Penn National's struggle to hit estimates comes as no surprise either. COVID-19 forced closures of their Illinois, Michigan and Pennsylvania retail locations, which obviously affected the company's bottom line. Penn revenues had been trending in the right direction ahead of the coronavirus shutdowns.
Along Comes Barstool
There wasn't much doubt about the impact that a Barstool Sportsbook would have on the industry when the media brand crossed over into the legal betting space. Barstool boasts 66 million dedicated viewers as well as 52 million Instagram followers, over 26 million followers on TikTok almost 5 million on Facebook, and 27 million on Twitter nationally. Their reach is massive.
The first state in which they launched, Pennsylvania saw the sportsbook downloaded 72,000 times with approximately $300 million in bets with limited marketing. In their second market-launch, Barstool Sportsbook was downloaded by 48,000 new customers in Michigan and saw $27.5 million in betting handle in the first 10 days and reported net earnings of $12.7 million in Q4.
Singing the praises of their new brand, Penn National CEO Jay Snowden said in a statement: 'We view Barstool Sports not only as a fantastic channel to promote our offerings, but also an undervalued media asset that has evolved from primarily a sports brand into a highly relevant sports and life-style brand,'.
Customer Acquisition Perks
The Barstool sportsbook was expected to benefit from the media brand's 66 million dedicated monthly viewers. The betting brand's attempts to flip a portion of those users, mostly younger, to online sportsbook customers has so far gone very well… and has done so cheaper than other participating sportsbooks.
The average customer acquisition cost for sportsbooks is said to range anywhere from $300 to $800. Barstool's costs have bested those averages. In fact, Barstool's costs are estimated to be just under $200 per customer.
Barstool Sportsbook Casino
In an investors' call this week, Penn CEO Jay Snowden went on record saying: 'For Penn, so far from the first four months in PA, despite all of the Barstool Fund matching that we've done as well as in Michigan in our first month, we are well below the bottom end of that range. We have so much room, we have so much cushion to be opportunistic and figure out what we want to do and how we want to do it.'
Where Do They Go From Here?
Penn expects the Barstool Sportsbook to be live in 10 states by the end of 2021. Indiana, New Jersey, Colorado, Virginia, West Virginia, Iowa and Tennessee are some of the states on the brand's radar. The brand hopes to add a new jurisdiction every 3-5 weeks this year.
Illinois, one of the most exciting new markets in the US scene looks to be first in line to gain a Barstool Sportsbook. The Chicago-area market is Barstool Sports' second-largest market in the country, giving the company an immediate leg-up before going live. The goal for Penn National is to have something in place in Illinois by March Madness, which is approaching quickly,
Maryland looks to be in Barstool's immediate future as well. In mid-December, Penn National announced an agreement with Gaming and Leisure Properties to acquire Hollywood Casino Perryville with the plan to have the Barstool betting brand live some time this year.
Barstool Sportsbook Penn National Picks
Hopes Becoming Reality?
Barstool Sportsbook launched with an ideal to become a true Heavyweight in the US legal sports betting scene and those desires haven't gone away. In fact, hope seems to be becoming reality for the brand.
Jay Snowden backed up his company's desires last week when he said: 'What I think you should assume is that we are going to be top three, we said that before we ever launched and we're delivering on that. We're going to be profitable faster than anyone else, and we're delivering on that and continue to deliver on that pledge, again, faster than anybody else.'
Maryland just recently legalized online gambling after the overwhelming passage of Question 2 on Election Day. It is now expected to be a very lucrative online gambling space, one that Penn National Gaming will certainly not be willing to miss out on. Give the company's track record in other states including Pennsylvania, its success in Maryland is almost guaranteed.
- Tags:
Penn National Gaming's Barstool Sports brand seems to have shrugged off the devastating impacts of COVID-19 in 2020 and is upbeat heading into 2021. Despite a net loss of $669 million in 2020, there was no shortage of positive signs for Penn National or optimism from their management team about Barstool Sportsbook heading deeper into this year.
It was just over a year ago that Penn National purchased a 36% interest in Barstool Sports and married two Heavyweight brands in the sports industry. Since then, Barstool has become an important and successful entity in their existing states, Pennsylvania and Michigan with an eye on rapid expansion in the next 12 months.
Penn National Misses Estimates… but Not Because of Barstool
Penn National last weeks, came out with its financials for Quarter 4 and not-all-that-surprisingly, it missed estimates albeit slightly. Q4 total revenues came in at $1.03 billion, off of the $1.09 billion estimate before commencement of the quarter.
The main reason for Penn National's struggle to hit estimates comes as no surprise either. COVID-19 forced closures of their Illinois, Michigan and Pennsylvania retail locations, which obviously affected the company's bottom line. Penn revenues had been trending in the right direction ahead of the coronavirus shutdowns.
Along Comes Barstool
There wasn't much doubt about the impact that a Barstool Sportsbook would have on the industry when the media brand crossed over into the legal betting space. Barstool boasts 66 million dedicated viewers as well as 52 million Instagram followers, over 26 million followers on TikTok almost 5 million on Facebook, and 27 million on Twitter nationally. Their reach is massive.
The first state in which they launched, Pennsylvania saw the sportsbook downloaded 72,000 times with approximately $300 million in bets with limited marketing. In their second market-launch, Barstool Sportsbook was downloaded by 48,000 new customers in Michigan and saw $27.5 million in betting handle in the first 10 days and reported net earnings of $12.7 million in Q4.
Singing the praises of their new brand, Penn National CEO Jay Snowden said in a statement: 'We view Barstool Sports not only as a fantastic channel to promote our offerings, but also an undervalued media asset that has evolved from primarily a sports brand into a highly relevant sports and life-style brand,'.
Customer Acquisition Perks
The Barstool sportsbook was expected to benefit from the media brand's 66 million dedicated monthly viewers. The betting brand's attempts to flip a portion of those users, mostly younger, to online sportsbook customers has so far gone very well… and has done so cheaper than other participating sportsbooks.
The average customer acquisition cost for sportsbooks is said to range anywhere from $300 to $800. Barstool's costs have bested those averages. In fact, Barstool's costs are estimated to be just under $200 per customer.
Barstool Sportsbook Casino
In an investors' call this week, Penn CEO Jay Snowden went on record saying: 'For Penn, so far from the first four months in PA, despite all of the Barstool Fund matching that we've done as well as in Michigan in our first month, we are well below the bottom end of that range. We have so much room, we have so much cushion to be opportunistic and figure out what we want to do and how we want to do it.'
Where Do They Go From Here?
Penn expects the Barstool Sportsbook to be live in 10 states by the end of 2021. Indiana, New Jersey, Colorado, Virginia, West Virginia, Iowa and Tennessee are some of the states on the brand's radar. The brand hopes to add a new jurisdiction every 3-5 weeks this year.
Illinois, one of the most exciting new markets in the US scene looks to be first in line to gain a Barstool Sportsbook. The Chicago-area market is Barstool Sports' second-largest market in the country, giving the company an immediate leg-up before going live. The goal for Penn National is to have something in place in Illinois by March Madness, which is approaching quickly,
Maryland looks to be in Barstool's immediate future as well. In mid-December, Penn National announced an agreement with Gaming and Leisure Properties to acquire Hollywood Casino Perryville with the plan to have the Barstool betting brand live some time this year.
Barstool Sportsbook Penn National Picks
Hopes Becoming Reality?
Barstool Sportsbook launched with an ideal to become a true Heavyweight in the US legal sports betting scene and those desires haven't gone away. In fact, hope seems to be becoming reality for the brand.
Jay Snowden backed up his company's desires last week when he said: 'What I think you should assume is that we are going to be top three, we said that before we ever launched and we're delivering on that. We're going to be profitable faster than anyone else, and we're delivering on that and continue to deliver on that pledge, again, faster than anybody else.'
'And as we scale, we just end up with a lot more dry powder to be more aggressive in the areas of widening that funnel and customer acquisition that we believe is driving the best return.'
