The Barstool Sportsbook took $11 million in handle on its first weekend live, according to new figures released by Penn National.
In a prospectus for its new share offering, Penn said the sportsbook app attracted 12,000 first-time depositors (FTDs) in Pennsylvania. Those customers had an average first deposit size of approximately $243.
Penn did not reveal revenue figures from the weekend (Friday, September 18 to Monday, September 21) but it was likely not a profitable one, as 13 of 14 NFL betting favorites won straight up on Sunday.
A Monday Night Football upset provided some respite. However, Barstool was also pushing an “Overs Club” promotion for the game, with a free hoodie sweatshirt for customers betting $100 or more on over 47.5. points. That also cashed.
How does Barstool stack up with rivals?
For comparison with the $11m figure, Fox Bet did around $22 million in PA sports betting handle in August. Rush Street‘s two brands, BetRivers and SugarHouse, were third in PA with $57.4 million in handle.
Of course, that comparison is somewhat unfair as rivals didn’t have the benefit of Barstool founder Dave Portnoy betting into the app. The sports calendar in August also did not include NFL games.
LSR asked Penn National about whether Portnoy could bet legally with the Barstool app and received this response from Eric Schippers, Sr. Vice President, Public Affairs:
“Barstool Sports is a registered gaming service provider with the Pennsylvania Gaming Control Board (“PGCB”). The PGCB does not prohibit qualifiers or employees of gaming service providers from wagering in Pennsylvania. In addition, Barstool Sports is not the operator of the Barstool Sportsbook app, and Mr. Portnoy has no control over the operation of the app.”
Regardless, the early returns are apparently positive for the Barstool Sportsbook app. It was also downloaded 30,000 times in Pennsylvania and approximately 180,000 times in the United States.
Over the weekend, it was the most downloaded sports-related app in the US.
Penn National raising new cash
The figures were released in the prospectus for a new share offering from Penn. The company is issuing 14 million new shares at market price. At the current $65 share price, that equates to around $900 million in new funds.
Penn said it would use the funds for “general corporate purposes,” including long-term growth initiatives, its brick and mortar properties, and its omni-channel strategy.
The stock dipped around 5% this morning on news of the dilution.
Analysts flag concerns about debt load
Macquarie Capital analyst Chad Benyon also downgraded the stock to neutral based on its 5x debt-to-EBITDA ratio.
He put a $66 target price on the share, with $34 for Penn’s core operations and $32 for iGaming and Barstool.