Rumors Swirl Of Barstool Sports, DraftKings DealNo Announcement Expected Until After Super Bowl |
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Fresh off a separation from Penn Entertainment in August that allowed Dave Portnoy to reacquire Barstool Sports from Penn Entertainment, rumors have swirled over the last week that the company may now hook up in a deal with DraftKings.
Penn relinquished the company after announcing its own deal with ESPN, rebranding the Barstool betting app as ESPN Bet. After seeing the DraftKings stock rally over the last week, reports have also surfaced that DraftKings could reach a multi-year deal with Barstool that could amount to “low eight figures” annually, according to reports.
Different From Penn Deal
Barstool has become a major influencer in the sports world since Portnoy launched the company in 2003. The brand brings an irreverent approach to podcasts, videos, and written content and has attracted a loyal audience over the last two decades.
Penn initially purchased a 36% stake in Barstool in 2020 for $163 million, and then acquired the remainder of the company in 2023 for $388 million. The casino and online sports betting operator hoped to harness Barstool’s popularity via a branded sportsbook.
That changed with the ESPN announcement, which enabled Portnoy to reacquire the company for $1 and Penn took an $850 million loss to offload the brand. The agreement with DraftKings would reportedly be different from the Penn plan, with Barstool using its various media properties to attract bettors to the sportsbook but not being used for its own platform.
“The deal would be a more traditional marketing partnership, with Barstool promoting DraftKings odds and benefiting from customers referred to the sportsbook,” Sportico reported.
No Announcement Yet
The companies haven’t commented on a potential deal and per a non-compete agreement with Penn, Barstool wouldn’t be able to announce a new partnership until after the Super Bowl. Betting has been a major part of the company even from its early days.
Portnoy initially distributed a weekly pamphlet focused on handicapping and fantasy football picks before launching into other arenas. Wagering information and discussion remains a major of the company’s media efforts.
“I would still argue that [sports betting] is a huge part of what we do today,” Barstool CEO Ayers Badan said at a Sportico conference in December. “Our crew bets obsessively on games, we always have … but I think you’ll see, into next year, that we start to establish ourselves back in that space.”
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