That ongoing bromance between Barstool Sports founder Dave Portnoy and Penn National Gaming CEO Jay Snowden is prompting regulatory scrutiny in Indiana and even Nevada, especially as Penn girds its loins for a full Barstool buyout. That would bring the uncouth Portnoy into the Penn fold as a key player in the company—and he’s not exactly someone you’d want to bring home to the gaming control board. The brash Portnoy faces serial accusations of sexual assault (which he denies) and Snowden has lashed himself to the Barstool mast. As the Wall Street Journal puts it, Snowden “stands by Mr. Portnoy and still believes in Barstool’s media appeal as key to the company’s future in sports betting and digital media.”
Portnoy’s questionable character has already cost Penn a shot at the New York State OSB market—although it could get a second bite of the Big Apple as money-mad lawmakers are pondering doubling the number of OSB licenses in the Empire State. Snowden has joined the chorus of those who say the current level of sports betting market is unsustainable. If Penn gains Barstool as an exclusive megaphone for its product, those costs could be shaved substantially. “They’re profitable, which is rare for a lot of digital media businesses,” Snowden told the WSJ. “They’ve delivered on what they said they would do.”
Continue reading Penn’s Portnoy problem; Unexpected winners, losers in Pennsylvania; Mega-Jottings
