From Nasdaq:

Dave Portnoy, founder of Barstool Sports, may be returning to the sports betting industry after selling the brand to Penn Entertainment and striking a deal with ESPN Bet. This comes after the PENN Entertainment announced the sale of Barstool Sports back to Portnoy and the licensing of the ESPN Bet brand.

Sportico reported that Barstool Sports is close to securing a sports betting deal with DraftKings, moving away from the initial ownership by Penn. The potential deal would be a marketing partnership, with Barstool promoting DraftKings odds and referring customers to the sportsbook. The deal, worth low eight figures annually, could be finalized after Super Bowl LVIII due to a lock-up agreement.

The sale of Barstool Sports to Portnoy included non-compete clauses, and former CEO Erika Ayers Badan hinted at a return to sports betting for the company. Penn paid over $500 million for Barstool Sports and recorded an $850-million write-off on the acquisition. Portnoy praised Penn and called the deal with ESPN a win-win for the company.

ESPN Bet, which launched in 17 states, had strong initial success and is now competing with industry leaders DraftKings and FanDuel. DraftKings shares rose 4% to $39.68, while Penn shares are up 1% to $24.11. Barstool Sports could be on the verge of a sports betting deal with DraftKings after being sold back to founder Dave Portnoy by PENN Entertainment. Barstool’s initial partnership with PENN led to the creation of the Barstool Sportsbook and marked the company’s entry into online sports betting. A potential new deal with DraftKings would involve marketing opportunities and could be worth low eight figures annually. Barstool’s previous ownership by PENN included non-compete clauses, and the company is now rumored to be returning to sports betting after being bought back by founder Dave Portnoy.



Read more: Dave Portnoy, Barstool Sports Could Return To Sports Betting With DraftKings Deal: Report