The sports betting world exploded Tuesday when ESPN announced it had forged a deal with PENN Entertainment to license its brand as a sportsbook.
The deal to create ESPN Bet worth $1.5 billion in cash over the first 10 years, in addition to $500 million in stock warrants isn’t necessarily what caused all the commotion.
With the deal came the disclosure that PENN was divesting from Barstool Sports, a property it had paid a total of $550 million for. That company has now been transferred under the sole proprietorship of founder Dave Portnoy.
For years, PENN patted itself on the back. Its competitors were spending tens or hundreds of millions of dollars to acquire customers, while PENN would have among the lowest acquisition costs in the…
Read the full article at: https://www.actionnetwork.com/legal-online-sports-betting/why-barstool-sportsbook-failed