Barstool Sports is about to ink a marketing deal with DraftKings, according to Sportico. It may be a few weeks before the partnership is official, as Barstool is prohibited from getting back into sports betting until after the NFL season.
The multi-year deal is a straight up marketing arrangement, whereby Barstool will promote DraftKings’ odds and sportsbook, Sportico reports. In return, Barstool will receive some form of affiliate payment, estimated to be in the neighborhood of the low eight figures per year.
Back in the sports betting space
When it comes to drama in the sports betting arena, Barstool Sports wears the crown. The Boston-based media company consistently grabs headlines for its partnerships, its breakups, and its controversial owner Dave Portnoy.
In 2020, Barstool made headlines when the casino company Penn Entertainment paid $163 million for a 36% stake in the company. Penn paid another $388 million in February 2023 for the rest of Barstool. Yet, six months later, the partnership exploded.
Penn sold Barstool back to Portnoy for a single dollar and a promise to stay out of the sports betting business until the end of the 2023-24 NFL season. Penn also stipulated that it would receive 50% of the proceeds of any future sale of Barstool. Penn immediately partnered with ESPN Bet, and started rebranding its former Barstool Sportsbooks.
Just weeks after the breakup, Barstool laid off 25% of its staff. At that point, no one was sure what Barstool Sports’ next chapter would entail. Its future seemed even murkier after its longtime CEO stepped down. Earlier this month, Barstool’s CEO Erika Ayers Badan resigned, saying she was “sad about it.”
Barstool’s strength was always its large, loyal, fan base – up to 200 million strong across social media platforms. And that sports-loving fan base is an obvious prize for sportsbooks. But Barstool as a sportsbook was never an easy sell. Portnoy is nearly impossible to regulate – and sports betting is a heavily regulated industry. Barstool as a sportsbook’s marketing partner, however, is likely to be a much better and easier fit.
