Barstool Sportsbook Launch
- The upcoming launch for Penn National ‘s Barstool Sportsbook app will begin in Pennsylvania, with more states expected by the first quarter of 2021. That’s according to the company’s second-quarter earnings release, which saw Penn lose $79.3 million in adjusted EBITDA during the second quarter.
- In a statement, Penn National Gaming, Inc., which owns Greektown, said it plans to launch its Barstool Sportsbook mobile app on iOS, Android and desktop at noon Friday. Its online casino games.
Penn National intends to officially launch its Barstool Sportsbook mobile app on iOS and android, as well as desktop at 12:00pm EST on Friday, January 22, 2021 and its iCasino products will follow shortly thereafter, subject to final regulatory approvals. Barstool Sportsbook debuted in Illinois with the launch of retail sportsbooks at Hollywood Casino Aurora and Hollywood Casino Joliet, both Penn National Gaming properties. Now that Barstool Sportsbook is operational in a retail capacity, the launch of mobile betting should follow soon. With launch day quickly approaching, we present this early Barstool Sportsbook.
After a rousing start to online sportsbooks and online casinos in Michigan, it’s tempting to put a lot of stock in the first batch of numbers that were released by the Michigan Gaming Control Board on Wednesday.
But there is caution to be had, as that first batch of numbers covered only the first 10 days of business.
And while it may be too early to start tallying up the losers, it may not be too early to start naming the winners.
“I think BetMGM is the most impressive,” said Matias Dorta, an associate at Roundhill Investments who spends his professional life analyzing gaming companies for the firm’s BETZ ETF, the largest sports betting ETF in the market. “They recently came out as number one in market share in Tennessee, which was surprising, and then they launched now in Michigan, and not only are they up there with the DraftKings and the FanDuels, they also finished first in online casino revenue. Very impressive.”
BetMGM, DraftKings, FanDuel, and Barstool collectively commanded over 95% of the sportsbook market.
“It’s really telling,” Dorta said. “And it’s probably something we’ll see more of as more states open up. You have to remember this is basically the first time we’ve seen these four sites start at the same time.”
Barstool sidles up
And while Dorta is impressed by BetMGM’s showing, he’s equally fascinated with Barstool hanging with the big boys, especially because Penn National Gaming officials say — and the company’s next quarterly report will likely bear this out — they are spending much less than others on marketing.
“One of the big things here is we know DraftKings is spending an arm and a leg on marketing,” Dorta said. “But what Barstool is doing for their marketing strategy is literally going into the Greektown Casino and essentially turning it into a live streaming room. And they’re running Big Cat, Portnoy, flying in Marty Mush, all out of the sportsbook, and it’s direct-to-consumer content. People are placing bets while they’re watching their favorite influencers bet at Greektown.”
And Dorta thinks Barstool’s strategy will pay even bigger dividends down the line.
“I think once lockdowns ease up, that’s really going to play into their favor, especially when football season comes around again,” Dorta said. “They can use the Greektown Casino as a place to bring over all of the Stoolies to watch games, to place bets.”
Another feather in Barstool’s cap? Accounting for promotional credits, Barstool was by far the most profitable sportsbook in the first 10 days in Michigan.
“It’s a really great sign for them,” Dorta said.
Not everyone impressed
When it comes to the … well, the not-winners in the Michigan launch?
“Basically everyone else out of the top four, but it’s way too early,” Dorta said. “Let’s wait for February’s data to come out.”
One item, however, did stand out to Dorta, and it was Golden Nugget, a top-five online casino in New Jersey that limped to a seventh-place finish in casino revenue in the first 10 days in Michigan.
“It was huge opportunity for Golden Nugget, and I need to look into what happened, but I’m guessing BetMGM, DraftKings, FanDuel decided to put more time and energy into getting their casino product out,” Dorta said. “Golden Nugget has their base established in New Jersey, but it didn’t translate — at least not yet — to Michigan. That’s probably the most surprising outcome on the online casino side.”
And while plenty of industry watchers and industry players are poring over these first numbers, Dorta cautions it’s still too early to crown winners or punish losers.
“I think we won’t really know who will dominate the market until the end of the year,” Dorta said.
But there is one massive takeaway Dorta thinks the Michigan launch lends itself to: Other states will want to duplicate the success.
“All in all, the Michigan news was very optimistic for states that are considering legalizing gambling,” Dorta said. “These are the moments when you get the conversations started in other state legislatures, looking to Michigan and saying, ‘Wow, OK, they were able to put this out pretty quickly, they are already seeing results, now it’s our turn.’ This can serve as a catalyst for other states.”
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Penn National Inc. agreed to acquire Hollywood Casino in Perryville, Maryland on Tuesday. The $31.1 million deal will allow Penn National to launch its Barstool Sportsbook in another state in 2021. This a crucial purchase for PENN as the company prepares for legalized sports betting in Maryland. On November’s election day, Maryland voters overwhelmingly approved legal sports betting.
Penn National CEO Jay Snowden on the purchase said, “This acquisition provides another opportunity to expand our unique omnichannel platform with a Barstool-branded retail sportsbook and mobile app.”
The shocking purchase by PENN is a strategic one as 2021 is shaping up to be its biggest year yet. Snowden also predicts that Barstool Sportsbook and Casino will be live in 12 more states by the end of 2021. It would appear that the Maryland acquisition will be finalized by mid-year 2021.
With Penn National Gaming stock surging over $80 per share, PENN is preparing to dominate 2021 similar to its strong 2020. This has been an impressive year for the gambling company, which has seen well over 100% gains in the calendar year. Expect 2021 to be very fruitful as PENN pushes to launch in every state that offers legal sports betting. Snowden said in October:
“As you get into 2021, I think you should expect for us to be in every state that’s legal, where we operate, and can launch by the end of 2021. We’ll be in over a dozen states by the end of the calendar year.”
Where And When Will Barstool Sportsbook Launch In 2021?
New Jersey: Expected launch Q2 2021 or later.
- Barstool Sportsbook needs a partner as they do not own an Atalntic City casino. Furthermore, Freehold Raceway has been attempting to get a license for two years now. This could be PENN’s entrance into the massive New Jersey market. Jay Snowden believes that they will be able to launch before the end of 2021, but Freehold Raceway will need to continue to build the infrastructure and then complete the application. There is still some leg work to be done before a launch can be expected.
Colorado: Expected launch Q1 or Q2 2021.
- Unlike New Jersey, Barstool Sportsbook does have a clear entrance point in Colorado. They are already operating a retail sportsbook at Ameristar Black Hawk Casino. This should give Barstool the right of passage to launch their app sooner rather than later. It will be interesting to see if Barstool Sportsbook pushes to launch prior to the Super Bowl or not.
Maryland: Expected launch Q3 or Q4 2021
- PENN just bought Hollywood Casino Maryland, so they have the partner to make this a reality. However, the deal does not close until mid-2021. Then Barstool Sportsbook will apply for a license and jump through any regulatory hoops that Maryland will require prior to launch. The football season is the hope for Barstool Sportsbook, but the launch could come later.
Illinois: Expected launch Q2 2021
- Barstool Sportsbook has multiple partners in Illinois, making it easy for them to find a dance partner. Illinois Governor J.B. Pritzker has extended the state’s online registration option multiple times, allowing people to register for sportsbook accounts without visiting a property. Should those extensions lapse without Pritzker renewing them, it presents an issue to casinos who would then need to rely on in-person registrations. Right now it seems barstool will bide its time until Covid-19 related closures wind down in the Land of Lincoln. After that, expect a full-fledged sportsbook launch.
Indiana: Expected launch Q3 2021
- There are very few details about the anticipated launch date for Barstool Sportsbook in Indiana. For now, all we know is that they will be partnering with either Ameristar East Chicago or Hollywood Casino Lawrenceburg. Snowden seems confident that they will be ready for launch prior to the end of 2021, I would expect it is before the NFL season begins.
Michigan: Expected Launch Q1 2021
- Michigan sports betting has been legal since March of this year. However, this only included retail sports betting and not online sports betting. It has been a huge topic of conversation as online betting was recently pushed back to January of 2021 at the earliest. Barstool has already said they are prepared to take bets on day one in Michigan. They are currently operating a retail sportsbook at Greektown Casino.
Virginia: Expected Launch Q2 2021 or Later
When Does Barstool Sportsbook Launch
- Virginia online sports betting has not yet launched but it is written into legislation. As far as we know, Barstool Sportsbook has not yet filed for a license. This would put them slightly behind schedule as FanDuel, BetMGM, and DraftKings have already submitted their applications.
Barstool Sportsbook Michigan Launch
West Virginia: Expected Launch Q1 or Q2 2021
- Barstool Sportsbook has an immediate partner with Hollywood Casino at Charles Town Races. They already intend on operating their retail sports betting casino within the state so expect this to happen sooner rather than later. Rest assured, West Virginia should see an early 2021 Barstool Sportsbook launch.