Barstool Sports Launches Sportsbook, Confident Fans Will Follow
Dan Etna, co-chair of Herrick's Sports Law Group was quoted in Front Office Sports regarding the launch of Barstool Sportsbook into the sports betting market. According to the article, Barstool Sports is relying on its built in fervent following and longstanding fanbase to propel its success and has eschewed major partnerships with media companies. Which, according to the article, "is exactly what Penn National Gaming was looking for when it purchased 36% of Barstool earlier this year" that includes "an automatic connection to a significant customer base."
"Sports betting operators are in a race to capture the most audience, so for Penn National to bring in Barstool could be an automatic connection to a significant customer base." Etna commented on the sports betting business model noting that "[w]hile sports betting can be profitable, it’s also a low-margin business, so the more than 20 operators in a state like New Jersey will likely thin out." Etna further noted that “[y]ou have to be mindful of how you operate and there are economies of scale to achieve." Moreover, “[these operators] realize it’s important to garner as much market share and customer allegiance as they can.”