Penn National Gaming, Inc (NASDAQ: PENN) bought a 36% stake in Barstool Sports this week. On Wednesday, Barstool Sports founder David Portnoy, CEO Erika Nardini and Penn National Gaming CEO Jay Snowden were guests on CNBC's "Mad Money" to talk about the deal.
Snowden: Going Young
Sports betting laws were passed down to be made by each individual state in 2018 and this helped Penn National gain exposure to 19 states, Snowden told host Jim Cramer. Despite having more exposure than any other betting company, Snowden said his company was missing a compelling sports brand.
Barstool Sports boasts the fanbase and brand that can be leveraged through Penn National's distribution and infrastructure, he said.
Portnoy: Large Opportunity
Portnoy said the opportunity to partner with Penn National is so big it could translate to the type of returns that will allow him to purchase a professional sports team. In fact, Portnoy and Nardini both felt their compensation should favor more Penn National stock than cash.
Portnoy also said he hopes to see pizza restaurants in Penn National casinos through the One Bite business -- an ode that diehard Barstool Sports fans will easily understand.
In all seriousness, Barstool Sports has a "huge funnel" and what makes the deal work with Penn National is adding a large scale to monetize it, Portnoy said.
Nardini said she spent a lot of time with Snowden to meet with all of the relevant regulatory bodies to reaffirm their joint commitment to operating "within the boundaries." Many changes will be implemented behind the scenes at Barstool Sports HQ to fully comply with all laws.
Snowden said Barstool Sports can keep its image and still be "responsible" when it comes to gambling.
Penn National surged more than 10% in Wednesday's session was was up another 5.4% in Thursday's session.