Barstool Sports, under the leadership of Dave Portnoy, is reportedly in advanced talks to collaborate with DraftKings Sportsbook.
The potential deal, though not officially announced or signed due to prior contractual obligations with Penn Entertainment, is expected to see Barstool receive a low eight-figure annual payment.
The arrangement involves Barstool hosting DraftKings odds and directing its audience to the DraftKings platform.
Notably, this collaboration does not involve Barstool lending its name to DraftKings.
Barstool was acquired by Penn Entertainment from Portnoy and investors for $388m in February 2023.
The partnership, however, faced setbacks, leading to PENN returning the company to Portnoy for $1, resulting in an $850m write-off for Penn.
DraftKings aims to leverage Barstool's talent pool, including Dan ‘Big Cat’ Katz and Frank The Tank, across its podcast network as part of this collaboration.
If Barstool were to be bought out, Penn would be entitled to 50 percent of the sale price, a provision implemented by the gambling provider when relinquishing its company back to Portnoy for $1. Although reports have not at all made clear how a potential deal would circumvent Barstool's non-compete clauses with Penn.
On 10 January 2024, DraftKings announced plans to launch its online sportsbook in Vermont, marking its 26th state and fifth New England state.
DraftKings has been proactive in expanding its footprint, having previously launched its online sportsbook and iGaming products in Ontario on 12 May 2022. The company's expansion isn't limited to Vermont, as DraftKings recently launched in North Carolina.
