The Barstool app launched with sports betting in Michigan in late January and ranked a distant fourth in market share in the Wolverine State’s first full month with online betting. And while the company continued seeking employees for the eventual Barstool launch, the focus for a time was on surviving the tsunami more than setting a new course. With no cash coming in, the company sold real estate to its spin-off company GLPI, or Gaming and Leisure Properties Inc., which the son of Penn’s founder runs. Next, Penn’s Tropicana property in Las Vegas was subject to a lease-back with GLPI. But that also meant Barstool’s massive audience was largely young male sports fans interested in sports betting — incidentally rather opposite of Penn’s female and 50-years-plus retail slot customers. While Penn had a conservative rep, Barstool was often perceived as toxically crass, misogynistic, and even at times, abusive.
In the future, we will see all of the big Vegas hotel casino open up properties online. The process is already underway, with New Jersey introducing regulation for online gaming in 2013. Other States are expected to follow, once a few years of results from New Jersey have come in and can be assessed by other States. Six months in, Barstool is still third in market share, taking 14% of PA sports handle in February. After handing out $5.8 million in promotional credits for the month though, taxable revenue was dead last for online operators at -$726K. Gross gaming revenue of $5.1 million, however, put Barstool ahead of DraftKings and second only to FanDuel.
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