Barstool’s Dave Portnoy to concentrate on sports wagering when sports return

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Barstool's Dave Portnoy to focus on sports betting when sports return

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As Penn National Gaming works to resume its gambling establishments and video gaming operations, Barstool creator Dave Portnoy is itching to go back to his roots.

Portnoy, a passionate sports gambler who started banking on stocks after expert sports stopped briefly due to the coronavirus, informed CNBC’s Jim Cramer he’s leaving the stock trading video game behind when sports make their return.

“I’m enjoying the stock stuff … It’s been fun,” he stated in a “Mad Money” interview, “but I’m a sports guy. I’m a sports bettor. I want sports back, and when it comes back that’s going to be where my focus is. But, for now, I am having fun with the stock game.”

Portnoy, who released the Barstool sports and culture blog site in 2003 and made millions offering a stake of the business to Penn previously this year, has actually narrated his trading activities throughout the coronavirus pandemic — both the great and the bad — for his countless social networks fans, to the ire of some Wall Street veterans. He likewise influenced a brand-new generation of financiers to get in the marketplace.

Portnoy exposed in April that he started day trading with $3 million on an old E-Trade account, even confessing to losing $647,000 in one day. He bombastically tweeted previously this month “I’m the captain now” which he has actually exceeded Warren Buffett when it pertains to choosing stocks.

Outside of the short-term trading exploits, Portnoy made a long-lasting play when he offered a 36% stake in Barstool to Penn in January in an offer worth $450 million. Barstool will introduce a sportsbook as part of the offer, and he anticipates it will be a “dominant player in the game” and an additive to the gambling establishment operator.

“I desired more equity in Penn when we did this offer. I asked [Penn CEO Jay Snowden] due to the fact that I am a risk-taker. I’m a sports bettor by nature,” Portnoy stated. “I can’t be more confident in what we’re building. Obviously, I’m biased, but I put my money where my mouth is.”

Penn National, which closed its gambling establishment doors as the U.S. was placed on lockdown to stop the spread of the coronavirus, has actually now resumed a bulk of its places and returned 11,000 staff members back to work, Snowden stated. About 50% of Penn’s slots and table video games are likewise open for service, and dining establishment capabilities stay restricted, he included.

Snowden appeared on screen along with Portnoy and Barstool CEO Erika Nardini for the interview.

“We announced on Friday that we now have over 70% of our properties reopened and we have a clear sight for the remaining 10 properties to be open in the coming weeks,” Snowden stated. “We’re off to a good start. We feel like we’re going as good today as we felt in the last 3-4 months, obviously, and every day is getting a little better.”

Thirty of its gambling establishment and racing residential or commercial properties are now open with social distancing and security procedures in location. The residential or commercial properties cover 19 specifies throughout the nation.

Penn’s stock rate collapsed more than 90% from its February peak to the March trough as Wall Street and the U.S. started coming to grips with the coronavirus pandemic, and the travel and show business took a few of the greatest losses. Since bottoming at $3.75 per share, the stock has actually increased eightfold, closing Monday’s session at $31.43.

The market price Penn at $4.3 billion, while its sports wagering competing DraftKings is valued at about $14 billion. Nardini informed Cramer that she anticipates those chances to be reversed in the future.

“We’re going to drive a tremendous amount of value for Penn. Look at what’s happened around their stock, look at what’s happening around our brand during the pandemic,” she discussed. “We are just getting started, and I think you’re going to see an incredible level of growth, not only for Barstool Sports but also for the sportsbook.”

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