The app will then launch in new states every three to five weeks with at least 10 states live this year, he said. Snowden sang Barstool’s praises and reiterated the brand’s strength in the US sports betting market. View the Webcast. WYOMISSING, PA (Jan. 29, 2020) – Penn National Gaming, Inc. (PENN: Nasdaq) (“Penn National” or the “Company”) announced today that it has entered into an agreement to acquire a 36% interest in Barstool Sports, Inc. (“Barstool Sports”), a leading digital sports media company, for approximately $163 million in cash and convertible preferred stock.

By now, you have likely heard the monumental news of Barstool Sports and Penn National Gaming partnering up. The partnership includes Penn National having a 36% stake in exchange for over $160M in cash, and it allows Barstool Sports to be the face and brand of Penn National Gaming.

The main asset to come from this partnership, without a doubt, is the creation of Barstool Sportsbook. Expect to see the Barstool brand all over Penn National properties in 2020 and beyond, and even a Barstool Sportsbook mobile app.

Is it safe to assume that Dave Portnoy and the Barstool Sports family will dominate the social media coverage for Barstool Sportsbook. Expect to see unique and specific use of a Barstool Sportsbook Promo Code for frequent new player bonus bets in each state with a Barstool Sportsbook or online casino.

Is The Barstool Sportsbook App in My State?

Official word has come down from the heavens, well Stoolie heaven, that the Barstool Sportsbook will be available in September. Penn National Gaming’s CEO Jay Snowden has indicated this, and with licensing needed and software development needed, the September 2020 timeline is respectable. Barstool Sportsbook and Penn National Gaming both know how important it is to be ready for the 2020 football season, both college and professional.

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• FANDUEL SPORTSBOOK APP

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https://twitter.com/astraffon/status/1276323440534925313

Expect the Barstool Online Sportsbook and mobile app to be ready in the following states:

• Pennsylvania
• Illinois
• Indiana
• Michigan
• New Jersey

The true test of how much Dave Portnoy has with “Stoolies” will certainly be on display with the launch of the Barstool online sportsbook and casino. The competition in the sports betting industry is on another level from what Barstool has dealt with in the past. With the likes of DraftKings Sportsbook, William Hill U.S. and PointsBet, it will be a great fight to watch in each state for market share.

Coming soon to PA?https://t.co/RQ4I0MVERJpic.twitter.com/9hnPK94epK

— PA Sportsbooks (@PASportsbooks) January 29, 2020

Barstool Sportsbook Promo Code and Bonuses

Expect Barstool Sportsbook to have promo codes galore, with things such as “PMT”, “BigCat”, “Barstool”, and more. Once ready, these promo codes will allow first-time users to sign up and get free incentivized offers for signing up at Barstool Sportsbook.

Risk-Free Bet

This is a popular incentive for many sportsbooks, which allows a user to make a risk-free bet of up to a certain dollar amount for their first bet. If the bet loses, the amount wagered will become sportsbook credit for the user to play with, hence the “risk-free” verbiage.

First Time Deposit Match

A standard at most sportsbooks, a deposit match is a great incentive for bettors to deposit more and play more right away. For example, if a sportsbook were to offer a 100% deposit bonus up to $250, if a bettor deposited $250, they would be eligible to receive up to $250 in free sportsbook credits, which are released either with a one-time play through or other restrictions.

Barstool Bets App

Barstool Sports saw this coming, and they have already rolled out “Barstool Bets” which is a free-to-play app that integrates Barstool’s content, podcasts, shows and more with a free betting game that allows users to place bets on games in hopes of winning prizes. This is a very valuable tool for both Barstool Sportsbook and Penn National Gaming in the future, as much of the user data has been (and will be) acquired on this app, which makes it quite easy to attract users once the main sportsbook is activated. With the ever-growing brand of Barstool Sports, the Barstool Bets and Barstool Sportsbook brands will be powerful as time goes on.

Where Can I Bet on Barstool Sportsbook?

While the Barstool Bets app is available everywhere (with no real money trading hands), Barstool Sportsbook will be a much slower rollout given the legal infrastructure in the US. The good news is, being partnered with a gaming giant in Penn National allows for a very easy transition into any states that PNG possesses casinos in.

We can fully assume Barstool Sportsbook will be in Pennsylvania, New Jersey, Indiana, West Virginia, Michigan, and others. Expect these to be amongst the first states where Barstool Sportsbook will be offered.

Remember, most states have their law(s) written that online sportsbooks can launch with a partnership with a land-based casino. Given the partnership between Barstool Sports and Penn National, this will create a relatively easy process. Wherever Penn National has properties, expect Barstool Sportsbook to follow.

Sports Betting Options at Barstool Sportsbook

Barstool Sportsbook will be a full-service sportsbook, with any type of betting options you could possibly imagine. This likely includes:

Spreads
Moneylines
Totals
Futures
Props
Parlays
Teasers
Live, in-game betting
Odds Boosts, and more!

With Barstool’s media empire being as large as it is, expect lots of push towards different betting types with the Penn National Gaming partnership.

Sports Offered at Barstool Sportsbook

Expect Barstool Sportsbook to offer a full set of sports options, as it expects to compete with the top sportsbooks in the US. We can certainly assume Barstool Sportsbook will have:

Baseball (MLB)
Basketball (MLB and College)
Boxing
Cricket
Cycling
Darts
Football (NFL, XFL, College)
Golf
Hockey
MMA
NASCAR
Rugby
Soccer (EPL, UCL, La Liga, etc)
Tennis

Barstool Sportsbook Banking Options

While nothing is set in stone, we can fully expect the following banking options for depositing and withdrawing at Barstool Sportsbook.

Deposit:

Online Banking
eCheck
PayPal
Credit Card
Debit Card
Skrill
Neteller
PayNearMe
Cash at Penn National Casinos

Withdrawals:

Online Banking
Check
Cash and Penn National Casinos
And more!

• DRAFTKINGS SPORTSBOOK APP

  FREE $1,000 BONUS!

• POINTSBET APP

  FREE $250 BET!

• FANDUEL SPORTSBOOK APP

  RISK-FREE $1000 BET!

• WILLIAM HILL SPORTSBOOK APP

  RISK-FREE $500 BET!

• FOX BET APP

  FREE $1,000 BONUS!

WYOMISSING, PA (Jan. 29, 2020) – Penn National Gaming, Inc. (PENN: Nasdaq) (“Penn National” or the “Company”) announced today that it has entered into an agreement to acquire a 36% interest in Barstool Sports, Inc. (“Barstool Sports”), a leading digital sports media company, for approximately $163 million in cash and convertible preferred stock. Under the agreement, Penn National will be Barstool Sports’ exclusive gaming partner for up to 40 years and have the sole right to utilize the Barstool Sports brand for all of the Company’s online and retail sports betting and iCasino products.

Jay Snowden, President and Chief Executive Officer of Penn National, commented, “This exciting new partnership with Barstool Sports reflects our strategy to continue evolving from the nation’s largest regional gaming operator, with 41 properties in 19 states, to a best-in-class omni-channel provider of retail and online gaming and sports betting entertainment.”

Mr. Snowden continued, “With its leading digital content, well-known brand and deep roots in sports betting, Barstool Sports is the ideal partner for Penn National and will enable us to attract a new, younger demographic, which will nicely complement our existing customer database. In addition, with 66 million monthly unique visitors, we believe the significant reach of Barstool Sports and loyalty of its audience will lead to meaningful reductions in customer acquisition and promotional costs for our sports betting and online products, significantly enhancing profitability and driving value for our shareholders.”

Jon Kaplowitz, Head of Penn Interactive, commented: “We look forward to introducing our 20 million mychoice customers to the Barstool Sportsbook brand through our retail sportsbooks and our interactive products. Our growing team of product and engineering talent at Penn Interactive is focused on what we anticipate will be a best-in-class sports betting app, which is expected to launch in the third quarter of 2020. Our team is excited to begin collaborating with Barstool Sports on ways to utilize its key talent and leading content to drive audiences to Penn National’s online gaming products and retail locations, as well as to special events and fan experiences.”

Erika Nardini, Chief Executive Officer of Barstool Sports, said, “Barstool Sports is a dynamic content company that has grown into a media juggernaut thanks to some of the best talent and fans in the world. Over the last five years, Barstool Sports has brought its audience, creativity and expertise to the biggest sports betting and DFS operators in the country with great results. The chance to combine our content and fans with Penn National's massive footprint, and to develop a unique and compelling omni-channel approach together, was for us a no brainer.”

Barstool Betting App

Dave Portnoy, Founder of Barstool Sports, added, “This opportunity is a dream of mine and why I started Barstool Sports in the first place. Barstool Sports has a deep sports and gaming history and from the moment we met Jay and the Penn National team we knew this could be an exciting and game changing partnership and we can't wait to get started. I think with our shared vision and goals, we are uniquely positioned to be a leader in this business.”

Mike Kerns, Partner at TCG, stated, “We’re excited to partner with Penn National on Barstool Sports’ next chapter. We have long believed in the power of Barstool Sports’ unique brand, and with Erika’s leadership and Dave’s vision, the Company has realized remarkable growth over the last four years. We believe the marriage of the Barstool brand and passionate audience with Penn National’s gaming leadership will change the industry.”

Mr. Snowden concluded, “As we continue to execute on our omnichannel strategy, we plan to remain focused on our efforts to de-lever our balance sheet while building on our long-term progress in expanding operating margins at our regional casinos. As previously announced, our goal is to achieve a lease-adjusted net leverage level of 5.0x by the end of 2020.”

Transaction Details
Penn National’s initial investment for 36% of the equity of Barstool Sports is comprised of approximately $135 million in cash and $28 million in shares of non-voting convertible preferred stock. After three years, Penn National will increase its ownership to approximately 50% with an incremental investment of approximately $62 million, consistent with the implied valuation at the time of the initial purchase.

Under the terms of the agreement, Penn National has immediately exercisable call rights, and the existing Barstool Sports shareholders have put rights exercisable beginning three years from closing, for the remaining Barstool Sports shares based on a fair market value calculation to be performed at the time of exercise. Penn National also has the option to bring in another partner who would acquire a portion of Penn National’s shares of Barstool Sports. Penn National will have customary governance rights, including initially two seats on Barstool Sports’ seven-member board of directors.

Following the close of the transaction, entities affiliated with The Chernin Group, which previously owned approximately 60% of Barstool Sports, will own 36% of Barstool Sports, and the remaining 28% will be held by Barstool Sports’ employees, including Mr. Portnoy and Ms. Nardini.

The Company expects to close the transaction in the first quarter of 2020, subject to customary closing conditions set forth in the purchase agreement.

Penn National Gaming will host an analyst day in June to discuss the Barstool Sports transaction further and expand upon the Company’s omni-channel vision for the convergence of sports betting and casino gaming.

Conference Call and Webcast
Penn National will host a conference call and simultaneous webcast today, Wednesday, January 29, 2020 at 8:00 a.m. ET to review the Barstool Sports transaction, share the Company’s vision for sports betting and iGaming, and host a question and answer session. To access the conference call, interested parties may dial www.pngaming.com. During the conference call and webcast, management will review a presentation which can be accessed at www.pngaming.com. A webcast replay will be available for 90 days following the live event at www.pngaming.com. Please call five minutes in advance to ensure that you are connected. Questions and answers will be taken only from participants on the conference call. For the webcast, please allow 15 minutes to register, download and install any necessary software.

# # #

About Penn National Gaming
Penn National Gaming owns, operates or has ownership interests in gaming and racing facilities and video gaming terminal operations with a focus on slot machine entertainment. The Company operates 41 facilities in 19 jurisdictions. In total, Penn National Gaming’s facilities feature approximately 50,500 gaming machines, 1,300 table games and 8,800 hotel rooms. The Company also offers social online gaming through Penn Interactive and has a leading customer loyalty program with over five million active customers.

About Barstool Sports
Founded in 2003 by David Portnoy, Barstool Sports is a leading digital sports, entertainment and media platform that delivers original content across blogs, podcasts, radio, video and social, supported by nearly 70 dedicated personalities. It benefits from approximately 66 million monthly unique visitors, including an estimated 48% of males and 44% of females in the Millennial and Generation X generations across the United States. In 2019, Barstool Sports grew by approximately 65%, delivering nearly $100 million in revenue from digital and audio advertising, ecommerce, events, licensing and subscription.

About The Chernin Group
The Chernin Group was founded as a holding company to acquire and operate direct-to-consumer brands in media and tech. After a decade building consumer businesses, The Chernin Group management team formed TCG – a multi-stage investment firm based in Los Angeles and San Francisco. TCG’s portfolio includes digital media, commerce, marketplaces, sports, gaming, consumer finance, and health and wellness brands and platforms.

Forward-looking Statements
All statements included in this press release, other than historical information or statements of historical fact, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements regarding the Company’s investment in Barstool Sports and the related transactions, the Company’s online strategy, the potential benefits of the investment in Barstool Sports, including the benefits for the Company’s online and retail sports betting and iCasino products, the expected financial returns from the transaction with Barstool Sports, including reductions in customer acquisition and promotional costs, the projected closing date of the investment in Barstool Sports, the Company’s ability to repay debt in 2020, are subject to risks, uncertainties and changes in circumstances that could significantly affect the Company’s future financial results and business. Accordingly, Penn National cautions that the forward-looking statements contained herein are qualified by important factors that could cause actual results to differ materially from those reflected by such statements. Such factors include, but are not limited to: (a) the Company may not be able to achieve the expected financial returns due to fees, costs and taxes in connection with the Company’s roll out of its own online and retail sports books and iCasino products; (b) states may not pass legislation approving online and retail sports books and iCasino products; (c) the closing of the transaction with Barstool may be delayed or may not occur at all, for reasons beyond our control; (d) the ability to satisfy the closing conditions to the transaction in a timely basis or at all; (e) the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976; (f) potential adverse reactions or changes to business or regulatory relationships resulting from the announcement or completion of the transaction; (g) the outcome of any legal proceedings that may be instituted against the Company, Barstool Sports or their respective directors, officers or employees; (h) the ability of the Company or Barstool Sports to retain and hire key personnel; (i) the impact of new or changes in current laws, regulations, rules or other industry standards; (j) the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the Company and Barstool Sports to terminate any of the transaction agreements between the companies, and (j) other risks, including those as may be detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). For more information on the potential factors that could affect the Company’s financial results and business, review the Company’s filings with the SEC, including, but not limited to, its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K. The Company does not intend to update publicly any forward-looking statements except as required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release may not occur.

CONTACTS:
General Media Inquiries:
Eric Schippers, Sr. Vice President, Public Affairs
Penn National Gaming

Kelly Martin, Head of Talent Relations and Communications
Barstool Sports
Kelly.Martin@barstoolsports.com

Bar Stools Betting

Barstool Betting App Promo

Financial Media and Analyst Inquiries:
Justin Sebastiano, Sr. Vice President of Finance and Treasurer
Penn National Gaming

Joseph N. Jaffoni, Richard Land
JCIR
212-835-8500 or penn@jcir.com