Barstool Sports, under the ownership of founder Dave Portnoy, is reportedly in advanced negotiations with DraftKings for a sports betting deal. The potential deal, described as a traditional marketing partnership, would involve Barstool promoting DraftKings odds and benefiting from customer referrals to the sportsbook.
Although the deal has not been finalized, it is said to revolve around a multiyear agreement that would see Barstool receiving low eight-figure annual payments. However, due to a lock-up following its separation from Penn Entertainment, Barstool is unable to formalize the betting deal until after the Super Bowl.
Representatives for DraftKings, Barstool, and Penn have not provided comments regarding the ongoing negotiations.
This development comes after gaming giant Penn sold Barstool back to Portnoy for $1, following an initial acquisition of 36% and subsequent purchase of the remaining 64% for $388 million. The plan to leverage Barstool’s brand and consumer base for a sustainable betting app did not materialize, leading to Penn’s decision to partner with a different sports media brand, ESPN, for a newly named sportsbook.
Barstool’s history is intertwined with betting, having started as a betting and fantasy pamphlet in 2003. While gambling advice and picks continue to be integral to its content, the company has been without a sponsor and has not benefited from directing its audience to any specific sportsbook.
The potential partnership with DraftKings signals a significant move back into the betting space for Barstool, following the restrictions imposed as part of its separation from Penn Entertainment. As discussions progress, the sports and media industries await the outcome of these negotiations and the potential implications for the sports betting landscape.
