Barstool Sports, led by Dave Portnoy, is in discussions with DraftKings for a potential sports betting re-entry through an affiliate marketing agreement. The deal, potentially worth low eight figures annually, would involve Barstool promoting DraftKings odds and receiving a commission from referred customers.
This new strategy diverges from Barstool’s previous approach with Penn Entertainment, where it licensed its brand for a sportsbook product. The ongoing discussions are constrained by a non-compete clause with Penn, expiring post-Super Bowl on February 11.
In a surprising move, Penn sold Barstool back to Portnoy for $1 in August, after acquiring a 36% stake for $163m in 2020 and the remaining 64% for $388m later. This sale included non-compete terms and Penn's entitlement to 50% of any future sale proceeds.
Following its strategy shift, Penn launched ESPN Bet, striving for a solid market share in the competitive sports betting landscape.
