• Loading stock data...
Friday, December 13, 2024
exclusive
Sports Betting

Barstool Sports Launches Sportsbook, Confident Fans Will Follow

  • Barstool Sports executives Dave Portnoy and Erika Nardini are confident their audience will flock to the sportsbook in the sports betting arms race for users and loyalty.
  • The Barstool Sportsbook app launched in Pennsylvania on Sept. 18. The state had an all-time high of $365 million wagered on sports for August.
Dave Portnoy Erika Nardini
Barstool Sports

As the Barstool Sportsbook launches into an increasingly crowded spots betting segment, Barstool Sports’ top executives — President Dave Portnoy and Chief Executive Officer Erika Nardini — are confident they’ll survive whatever shakeout there might be.

There’s one reason for that confidence: Barstool’s fervent following. In the company’s 17-year history, it has supported whatever the company releases — like a pink lemonade vodka — or followed the media company’s personalities in whatever they do — like Portnoy’s foray into day trading when sports shut down earlier this year. It’s not just positive support for the products, the fans are also vehement defenders of the organization and its personalities when they find themselves in a controversial position — going so far as to use social media to attack those who speak against the brand.

So while other betting companies enter major partnerships with media companies, like PointsBet did recently with NBC, Barstool could ride the wave it has already built.

“That’s our biggest advantage,” Portnoy said. “We are going to sort of sit on the sidelines in an advertising bonanza and this race to the bottom. There is no doubt in my mind we’ll be one that makes it because we have a firm, long-standing fanbase.”

“In a weird way, it’s letting everyone else beat up on each other while we do our thing. That helps us,” he added.

That mentality is exactly what Penn National Gaming was looking for when it purchased 36% of Barstool earlier this year in a deal that valued the company at $450 million.

The casino company was on the forefront of a growing trend of sports betting operators partnering with “influencers” to capture new market share and gain consumer loyalty. Penn National’s stock price is up more than 150% since the deal in January.

There’s still plenty of market to be gobbled up by operators. The Barstool Sportsbook app launched in Pennsylvania on Sept. 18. The state had an all-time high of $365 million wagered on sports for August. New Jersey set a U.S. record with $668 million bet in August.

Nardini said the difference in sportsbooks currently is the marketing, and with Barstool Sportsbooks on the name plates for Penn National, that’s where they’ll separate.

NBC Sports

PointsBet, NBCUniversal Enter 5-Year Sports Betting Partnership

As PointsBet looks to capture 10% or more of the U.S. sports…
August 28, 2020

“The sports betting partnerships with media companies, those center around TV, those audiences are old and the partnerships are stale in terms of the format and expression of the brand,” she said. “We have a brand putting it on the book itself. In our case, our content is the marketing. The way we talk to our fans, the way we connect. The way we make things fun. We have an appeal to the 21-plus audience in a way no one else has.”

Sports betting operators are in a race to capture the most audience, so for Penn National to bring in Barstool could be an automatic connection to a significant customer base. While sports betting can be profitable, it’s also a low-margin business, so the more than 20 operators in a state like New Jersey will likely thin out, said Dan Etna, co-chair of the sports law practice at law firm Herrick Feinstein.

“You have to be mindful of how you operate and there are economies of scale to achieve,” Etna said. “[These operators] realize it’s important to garner as much market share and customer allegiance as they can.”

Barstool has a self-reported 66 million user reach and says that approximately 62% of them bet on sports. While Barstool fans generally pick up what the company’s voices say, Portnoy acknowledges this endeavor could be different. He accepts some bettors will look around for the best price or the best line. 

For most of the fans, however, it’ll likely be like when Portnoy quadrupled the trading volume of an airline exchange-traded fund or when Dan “Big Cat” Katz drew hundreds of thousands of Twitch viewers while streaming NCAA Football ’14 during the pandemic lockdown.

“Barstool is a lifestyle brand as much as it is a media brand,” Nardini said. “That’s a luxury. In this [sports betting] space, customers don’t care. But they care about us. That’s what is so different.”

Colts
exclusive

Q&A: theScore’s John Levy on Indiana Launch & Betting Landscape

“What we’re seeing in terms of engagement on the app and in…
September 17, 2020

She’s also optimistic the reverse will happen as well: people who bet at the sportsbook will fall into the Barstool hemisphere. 

“In most cases, when someone runs into our content, something about it grabs them,” Nardini said. “The technology will not be what wins or loses. The differentiator will be the way these guys make their picks and talk about the futures and based on what they talk about.”

Both Nardini and Portnoy declined to speak to how the sportsbooks will affect the bottom line at Barstool, explaining that funnels through Penn National’s ownership. They also declined to speak to future state rollout plans, but Nardini said multiple should be launched in the next year.

While Portnoy spent some time in Pittsburgh early during launch week and is generally optimistic about the launch, he knows it won’t be all good. 

“We’ll exceed the goals Penn [National] was hoping for in signups and downloads,” he said. “But there will be hiccups. I’m looking at competitors and they’re having outages and they’ve been doing it a long time. One of the challenges and beauties in doing things with us: no one launches like we do.”

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Indiana Fever forward Aliyah Boston (7) celebrates with Indiana Fever guard Caitlin Clark (22) altering recording a triple-double Wednesday, Sept. 4, 2024, during the game at Gainbridge Fieldhouse in Indianapolis. The Indiana Fever defeated the Los Angeles Sparks, 93-86.

The Meteoric Rise of Women’s Basketball in 2024

The business of women’s basketball exploded this year.
Nov 15, 2024; Arlington, Texas, UNITED STATES; Mike Tyson (black gloves) fights Jake Paul (silver gloves) at AT&T Stadium.

Netflix Spectacle Made Tyson, Paul Top Trending U.S. Athletes of 2024: Google

The Yankees and Dodgers were among the top trending sports team searches in 2024.
Oct 22, 2024; Kansas City, MO, USA; TCU Horned Frogs center Sedona Prince (13) talks to media during Big 12 Women’s Basketball Media Day at T-Mobile Center.

Athletes in Landmark House Case Ask for College Players’ Association

Plaintiffs in the House v. NCAA case want more than just revenue-sharing.
DraftKings

Sens. Say DraftKings, FanDuel May Have Conspired to Crush Competition: ‘One Company’

The senators asked the FTC and DOJ to investigate the gambling companies.

Featured Today

Nov 2, 2024; Denver, Colorado, USA; Detailed view of a Wilson NBA basketball held by a referee during the second half between the Utah Jazz against the Denver Nuggets at Ball Arena

‘Obvious Weak Point’: Refs Remain an NBA Gambling Concern

A season after Jontay Porter, the biggest risk may not be players.
Nov 2, 2024; Ann Arbor, Michigan, USA; Michigan Wolverines cheerleader runs with a flag before the game against the Oregon Ducks at Michigan Stadium.
opinion
December 7, 2024

College Football’s Billionaire Backer Era Begins

Is this the new normal in CFB recruiting?
LA Galaxy forward Dejan Joveljic (9) celebrates with midfielder Riqui Puig (10) after scoring a goal against Seattle Sounders FC in the second half in the 2024 MLS Cup Western Conference Final match at Dignity Health Sports Park
December 6, 2024

With or Without Messi, Major League Soccer Is Barreling Into the Future

After the Cup final, the league looks to accelerate its growth.
Dec 18, 2022; Lusail, Qatar; FIFA president Gianni Infantino claps during the awards ceremony after the 2022 World Cup final between Argentina and France at Lusail Stadium.
December 2, 2024

FIFA Wants More Matches. Resistance Is Growing Inside the Global Soccer World

Resentment and frustration over expanded schedules is nearing a breaking point.

Poker Pro Pleads Guilty to ‘Massive’ Sports Betting Tips Fraud

Cory Zeidman ran a scheme that amassed $25 million over 14 years.
Sports betting Analyst Steve Coughlin gives out high-fives on the set of ESPN's College Game Day at the University of Texas, ahead of the Longhorns' game against the Georgia Bulldogs in Austin, Oct. 19, 2024.
November 7, 2024

ESPN Bet at Critical Point As Penn Reports Quarterly Earnings

The two sides agreed to a 10-year deal last August.
DraftKings
November 8, 2024

DraftKings Lowers Full-Year Guidance After Brutal NFL Outcomes

DraftKings cited a tough start to the fourth quarter in lowering its 2024 guidance.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
Nov 4, 2024; Kansas City, Missouri, USA; Kansas City Chiefs wide receiver DeAndre Hopkins (8) celebrates with quarterback Patrick Mahomes (15) after scoring against the Tampa Bay Buccaneers during the second half at GEHA Field at Arrowhead Stadium.
November 6, 2024

Missouri Becomes 39th State to Legalize Sports Gambling

Missouri was the only state with sports gambling on its ballot this election cycle.
November 5, 2024

On the Ballot: Sports Betting, Former Athletes Impacting the 2024 Election

Several U.S. Senate candidates have sports backgrounds, while Missouri voters will consider legalizing sports betting.
Tony Hinchcliffe at Donald Trump rally.
November 4, 2024

Sports Betting Companies Holding Comic at Arm’s Length After Trump Rally

Hinchcliffe drew criticism over his comments at a rally for Trump.
November 1, 2024

Polymarket Is Pushing Into Sports Betting

Once the ballots are counted, Polymarket needs to take on sports.