
Barstool Sports was once just a simple newspaper company that offered sports stories and gambling tips. It has grown exponentially throughout the years growing to the media mogul it is today. Everywhere you look you can see examples of Barstool’s influence; they produce a huge amount of the sports related content we can see on Twitter and Instagram. This company has been counted out by investors for years because they did not believe in them or share their vision for the future. As of Tuesday, Barstool Sports was bought by Penn National Gaming and valued for a whopping 450 million dollars. As Barstool founder Dave Portnoy would say “They have unlimited money”. Barstool has taken the leap from just using twitter and Instagram to being one of the largest podcast producer in the world. Popular podcasts like Pardon My Take and KFC radio have aided their growth. This is a nation-wide known brand and the legalization of sports gambling is the main reasons for their partnership with Penn National Gaming. Gambling was at the start of the company and it is going to be the reason for its future growth. Barstool themed casinos are already in the works. These will just continue to grow the already massive brand.
Forbes wrote an article about the sale detailing the companies previous problems they’ve been faced with. During the “Deflate Gate” scandal with the New England Patriots, Dave Portnoy and other employees staged a protest outside of the NFL’s headquarters. They all got arrested tarnishing the name of Barstool sports. The NFL has banned them from ever being able to go to the Super Bowl and they’ve been kicked out or arrested every year since then trying to sneak in. While some may say this would have hurt the brand, I believe it only made them stronger. It gave them a ton of publicity, and put their company in the media’s eye.
Since Penn National Gaming’s purchase of Barstool Sports, their stock price has shot up. Their original investment was 163 million dollars for 36% ownership of Barstool Sports. After the purchase stocks rose 14.1% almost overnight. According to CNBC, billionaire investor Ron Baron talks about how how great this deal will be with Penn National Gaming. Pairing a media giant like Barstool, with casino company is a recipe to print money. Barstool has a “cult-like” following and its followers will follow anything Barstool sponsors. Barstool has the ability to reach millions on multiple different platforms. They have multiple accounts with millions of followers on multiple platforms. They have the abilty to advertise for Penn National Gaming on a national scale. This is a big win for legalized gambling. Since it is not legalized nationwide, law makers seeing a deal of this magnitude will quickly change their minds when they can see the tax revenue it can bring in.
While this evaluation can comprehensible, some suggest this is even a bargain for the media giant. Sports Illustrated is one of these companies. They talked to gaming industry consultant Sara Slane. She talks about how Draft Kings and Fan Duel spent over 206M on advertisements in 2015 alone. Due to the magnitude of Barstool Sports, Penn now has access to over 66 million monthly users. It is also estimated to have over 50% of their user base who are active gamblers. Penn now has the ability to reach all of Barstools followers to advertise for their many casinos. This will also allow Penn to stand out in the vast amount of casinos opening. Barstool’s followers will naturally go to the casinos that Barstool promotes. Penn essentially payed to have a new huge following and will make back their investment in no time. Currently Penn has over 41 casinos in 19 different states. That being said, they are not very well known and lack a national brand name. Pairing them with Barstool’s media reach will give them that brand.
The Motley Fool goes on to talk about how much impact Barstool will have on Penn National Gaming. They talk about how Barstool is “By the Common Man for the Common Man”. Barstool is unlike any other media company. They don’t hold back in their content and are often seen as “crude and controversial”. This is actually a good thing for Penn and Barstool. People are getting tired of the controlled PC content that is being released on most media platforms. Writers and bloggers cannot be themselves due to the multiple limitations their respective companies put on them. Barstool does not have these limitations. Their writers and bloggers can be themselves, and release the content they want. This is what makes their followers love their content so much. They can see the genuineness behind it and typically flock to that kind of content. Pairing this genuineness with a huge company like Penn National will be very beneficial to the future of sports gambling and the future of Penn National Gaming.

