A popular sports and pop culture media brand is now a gambling company, too.
Penn National Gaming purchased 36 percent of digital brand Barstool Sports for approximately $163 million, the companies jointly announced Wednesday. The agreement means Barstool will continue its plunge into gambling, as Penn National will be the exclusive gaming partner for the company. Under the agreement, Penn National also has the sole right to use the brand for online and retail sports betting products.
That means a Barstool online sportsbook and perhaps even a brick and mortar casino can begin popping up in states where sports gambling has been legalized.
The initial 36 percent investment will increase to 50 percent after three years with an incremental investment of approximately $62 million, according to the agreement. The deal is expected to close by the end of the 2020 first quarter.
At this time, The Chernin Group, which purchased a majority stake in Barstool in January 2017 in a deal worth roughly $100 million, will retain 36 percent control of the company. Barstool employees control the remaining 28 percent.
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