The Barstool Sportsbook is no more.
In the latest seismic shift for a gaming industry that has pivoted from saturation to profitability, Penn National has sold Barstool back to Barstool, and all Barstool Sportsbooks will be renamed for ESPN.
ESPN announced that it has partnered with Penn National to launch “ESPN BET.” Barstool founder Dave Portnoy then explained in a video that he has bought back the company from Penn.
“I have purchased back Barstool Sports from Penn,” Portnoy said, adding that he once again owns 100 percent of the company.
“We underestimated just how tough it is for myself and Barstool to operate in a regulated world,” Portnoy said. “Every time we did something, it was one step forward, two steps back. We got denied [gambling] licenses because of me. . . . So the regulated industry, probably not the best place for Barstool Sports and the type of content we make. . . . It’s back to the pirate ship.”
In the video, Portnoy says he’ll never sell the company again. The official press release from Penn and ESPN helps explain that position: “PENN sold 100% of the Barstool Sports, Inc. (‘Barstool’) common stock to David Portnoy in exchange for certain non-compete and other restrictive covenants. PENN also has the right to receive 50% of the gross proceeds received by David Portnoy in any subsequent sale or other monetization event of Barstool.”
So, basically, if Portnoy sells all or part of Barstool in the future, he must give 50 percent of whatever he gets to Penn. Which makes it very unlikely he will ever sell.
It really is a stunning turn, and it’s further proof of how volatile and unpredictable the still-new widespread legalized gambling industry has become.