Penn National's support of Portnoy highlights a potential risk it takes by making a big bet on the controversial media personalityGETTY IMAGES
Scrutiny of Barstool Sports is "mounting" as gambling operator Penn National Gaming Inc. moves to "acquire the media company to help it compete in the sports-betting business," according to Sayre & Abdel-Baqui of the WALL STREET JOURNAL. Gambling regulators in Nevada and Indiana have said that they are "looking into" Barstool and Penn National in the "wake of sexual-misconduct accusations" against Barstool Sports Founder Dave Portnoy. Penn CEO Jay Snowden said that Penn, which took a 36% stake in Barstool two years ago, "stands by" Portnoy and "still believes in Barstool’s media appeal as key to the company’s future in sports betting and digital media." Penn’s support for Portnoy "highlights a risk it takes by making a big bet tied to an outspoken, and sometimes controversial, media personality." Penn said that it is "on track to take full ownership of Barstool next year." Penn has reported that in Pennsylvania and Michigan, Barstool Sportsbook had "market share of 15% and 18%, respectively, in net gaming revenue in December." Snowden said that the accusations were about Portnoy’s "personal life," and Portnoy "isn’t an employee of Penn." Snowden added that Portnoy will "remain involved in what Penn does in sports betting," and the company is "considering what the organizational structure will be." He "expects to announce details in the third quarter" (WALL STREET JOURNAL, 3/18).
