Penn National Sees Boost From Barstool Going Live in PA
The launch of Barstool Sportsbook in Pennsylvania has proven to be a win for Penn National Gaming.
In Penn National’s third-quarter earnings release Thursday, President and CEO Jay Snowden said that "nearly 48,000 people have registered through the app in Pennsylvania alone and, over the course of the first 37 days of operation, the app generated total handle of $78 million across 30,000 first-time depositors," as of Oct. 24.
Barstool Sportsbook app went live in Pennsylvania on Sept. 18 in partnership with Penn National. It’s the first state where the Barstool Sportsbook app is available.
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In its first weekend alone (Sept. 18-20), the Barstool Sportsbook app was downloaded more than 63,000 times, averaging 21,000 downloads a day during the Friday through Sunday period after going live.
Penn National Gaming on Jan. 29 announced that it was paying $163 million on Jan. 29 to purchase a 36% interest in Barstool, becoming the “official gaming partner for up to 40 years.”
Total Handle Record in Pennsylvania
Pennsylvania set a new state record for total sports handle in September with $462.79 million, a 26.8% increase over the mark it set just last month.
Hollywood Casino at Penn National Race Course outside of Harrisburg had a handle of $32,335,584 for September aided by the start of Bartstool. Almost $30 million of the total handle was online via the Barstool app.
In the earnings news release, Penn National reported third-quarter revenue of $1.13 billion, with a net income of $141.2 million.
“This app launch was a significant milestone for the company, and I would like to acknowledge and thank our Penn Interactive team and our partners at Barstool Sports for their hard work and dedication over the last several months,” Snowden said in the release. “These results were achieved with very limited external marketing spend, highlighting the ability of Barstool Sports to convert its growing audience to our sports betting product.
”In addition, we have seen high user engagement on the app, with over 39% of our customers placing wagers on bets promoted by the Barstool personalities. Our early experience in Pennsylvania has reinforced our view that we are well-positioned to achieve meaningful and profitable market share in the high-growth sports betting and iCasino space.”
More States on Tap for Barstool
Over the next few months, Penn National said it will start to introduce the Barstool Sportsbook app to other states, including Michigan, which is expected to launch prior to the end of 2020.
The app is also going to introduce a new iCasino product sometime in 2021.
Barstool branded retail sportsbooks will also open in some Penn National casinos, with anticipated openings later this year at Greektown (Detroit), Ameristar East Chicago (Indiana) and Ameristar Black Hawk (Colorado) as well as Hollywood Lawrenceburg (Indiana) in early 2021, the company said.
“We remain very pleased with the growing financial performance of Barstool Sports. Despite the temporary loss of live sports and a general slowdown in advertising spend, Barstool continues to have its strongest year in its history and has seen profitable revenue growth through a diversified revenue mix of advertising, brand licensing, and merchandising,” Snowden said. “More importantly, Barstool continues to grow its audience, particularly across social media, with more than 50 million followers on Instagram, 26 million followers on Twitter and 22 million followers on TikTok.
“In fact, despite only recently launching, the social media accounts for the Barstool Sportsbook have already reached more than 700,000 total followers across Twitter and Instagram.”
He said the company will try to capitalize on the excitement around Barstool Sports by working to launch standalone Barstool-branded entertainment destinations in key markets. These locations will serve as virtual sportsbooks in large metropolitan areas in states with approved online sports betting, Snowden said.
TheScore Reports Earnings
Score Media and Gaming on Thursday reported total revenue in the fourth quarter of its financial year, which ended Aug. 31, at $2.5 million. It reported $6.4 million for the same period last year. Gaming handle was $14.8 million in Q4 and gross gaming revenue was $0.5 million.
It cited the coronavirus as part of a reason for revenue being down year over year.
Churchill Downs 3rd Quarter Up
Churchill Downs reported net revenue of $337.8 million in the third quarter, a 10% increase compared to $306.3 million for the third quarter in 2019. Net income was $43.2 million, up from $14.8 million last year.
The results were helped by the Kentucky Derby moving into the third quarter and running on Sept. 5. Authentic won the race.
Twin River Sees 3rd Quarter Growth
Twin River Worldwide Holdins announced its third quarter earnings Thursday, reporting income of $23.4 million, an increase of $1.9 million or 9%, while net income of $6.7 million was slightly down, compared to the third quarter in 2019.
The company also said that it saw adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $38 million for the quarter, up $2.4 million, or 6.8%, from the same period in 2019.
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