Barstool Uses In-House Tech For Sportsbook
PENN Entertainment, a casino operator and entertainment company, completed its acquisition of Barstool Sports, gaining full ownership of the property in 2020, with a finalized acquisition of $388 million for a 64% stake in Barstool that PENN did not own previously.
The initial agreement between Barstool founder Dave Portnoy and Peter Chernin’s Chernin Group in 2016 included a provision for PENN to gain full control and ownership of Barstool Sports eventually.
PENN’s Investment in Barstool
Over three years since PENN’s initial investment in the company, Barstool Sports has experienced remarkable growth, increasing its audience by an impressive 194%. Presently, the company boasts a substantial following of over 200 million across various platforms.
Barstool’s diverse content offerings include more than 100 shows, including; podcasts, videos, social media content, live events, and pay-per-view content. The company also runs a thriving commerce business.
Barstool Sportsbook
In collaboration with PENN, Barstool Sports has successfully launched the Barstool Sportsbook, an online betting platform that is currently operational in 15 states. This strategic move has further expanded Barstool’s reach and presence in the sports betting market, adding another dimension to its already extensive resume of offerings.
Under its extensive portfolio of brands, PENN Entertainment oversees a large network of 43 casino and gaming properties in over 20 states. Additionally, the company is actively involved in online sports betting operations in 16 jurisdictions and iCasino activities in five jurisdictions. Some well-known brands include Hollywood Casino and theScore Bet Sportsbook and Casino.
This diverse range allows PENN Entertainment to cater to and reach a wide audience while maintaining a strong presence in the gambling and entertainment industry.
Moving to In-House Technology
The acquisition of theScore, a media and sports betting company based in Toronto, marked a significant milestone for the entertainment company. Providing the company with valuable technology and gaining expertise in the sports betting market. Using theScore’s platform, PENN was able to create solutions that fit Barstool, capitalizing on its user base and expanding its offerings.
By having platform development in-house, Barstool Sportsbook has been able to make substantial improvements to the user experience, operation efficiency, and its competitive position within the sports betting industry. The transition has resulted in a more intuitive and personalized betting experience, with enhanced user interfaces, improved navigation, and an expanded range of betting options.
Overall, this move has empowered Barstool Sportsbook to offer its users a more sophisticated and enjoyable betting experience, strengthening its position in the market and cementing its presence among top players in the industry.
Before, Barstool Sportsbook had been collaborating with Kambi as its sports betting provider since 2021. However, this partnership came to an end with PENN’s acquisition of theScore, which is a company known for its top-tier technology.
The integration of theScore’s technology improved the platform’s stability and scalability, paving the way for expansion into new markets while also evolving to fit requirements.
Conclusion
Since its launch in 2021, PENN’s Barstool Sportsbook has been aiming to establish itself as one of the leading sport betting destinations in the U.S. market. While it is recognizable, the company still has yet to reach the numbers of the top players such as FanDuel and DraftKings.
The company remains optimistic about its financial performance, projecting profits between $6.37 billion and $6.81 billion for 2023. Barstool generated $1.67 billion in revenue during the first quarter of this year, which is a 7% increase from 2022. With a focus on delivering a better product in its 16 existing U.S. markets and the potential for expansion, Barstool is hoping to achieve its ambitious financial goals and plans.
With an audience on the company’s improved technology to see if it really can live up to the expectations and contribute to Barstool’s ambitious earnings goals.
