• Thu. Sep 16th, 2021

Penn Nationwide Gaming Tops $100, Market Cap Larger Than MGM


Jan 12, 2021

Posted on: January 11, 2021, 03:56h. 
Final up to date on: January 11, 2021, 04:33h.

Todd Shriber Learn Extra

Boosted by hypothesis on the destiny of on-line sports activities betting in New York and a powerful weekend deal with on NFL video games, Penn Nationwide Gaming (NASDAQ: PENN) surged seven p.c Monday on quantity that was greater than 50 p.c above the each day common.

The Barstool Sportsbook at Penn Nationwide’s Ameristar On line casino in Colorado. The inventory hit $100 as we speak. (Picture: Denver Westword)

Within the course of, Penn inventory closed above $100 for the primary time, becoming a member of Wynn Resorts (NASDAQ:WYNN) as the one home gaming equities with triple-digit value tags. The Barstool Sportsbook operator completed as we speak with a market capitalization of $15.59 billion, inching forward of MGM Resorts Worldwide (NYSE:MGM) by that metric. Penn is now the third-largest US-based on line casino firm by market worth, trailing solely Las Vegas Sands (NYSE:LVS) and Caesars Leisure (NASDAQ:CZR).
In lower than 10 months, Penn went from buying and selling under $4 to over $100, confirming some analysts’ view that the January 2020 buy of a 36 p.c stake in David Portnoy’s Barstool Sports activities for $163 million woke up a sleeping big.

That is actually a testomony to the standard of the Barstool Sports activities acquisition by Penn,” stated Roundhill Investments analyst Matias Dorta in an interview. “When Penn introduced the Barstool acquisition in January 2020, the corporate’s prospects modified in a single day. As soon as a little-known however worthwhile regional on line casino operator, Penn was reworked right into a digital media and sports activities betting powerhouse.”

Including to the superlatives for Penn inventory are its standing as the most important part within the Russell 2000 Index and its place as a possible addition to the Nasdaq-100 Index later this yr.
Michigan Take a look at Looms
Final September, Penn launched the Barstool Sportsbook app within the gaming firm’s house state of Pennsylvania, and that was the lone state the place it was obtainable for the final a number of months of the yr.

With basically no advertising and marketing spend by Penn, the app quickly turned successful, ascending the ranks of the most-trafficked web-based sportsbooks within the Keystone State. Its subsequent take a look at might be Michigan, a big state that’s a more recent entrant to the net sports activities betting fray.

“I imagine the subsequent massive take a look at for Penn Nationwide and Barstool is the Michigan launch of the Barstool Sportsbook app, scheduled for this month as soon as on-line betting goes reside within the state,” stated Roundhill’s Dorta. “That is the primary time Barstool Sportsbook might be launching on the beginning line with their opponents. In Pennsylvania, they launched greater than a yr after on-line sports activities betting went reside within the state. It is going to be attention-grabbing to see if Barstool Sportsbook can take a prime market share place in Michigan.”
Cult of Persona
Whereas partnerships between gaming and media corporations are the norm nowadays, the steady of influencers Penn gained entry to with the Barstool deal is one thing rival pairings lack.
In actual fact, Barstool founder Portnoy is, in some circles, considered because the face of Penn Nationwide, though he holds no official government position on the firm.
“Barstool’s slate of influencers from Portnoy to Massive Cat to Marty Mush, podcasts akin to “Name Her Daddy” and “Pardon My Take” ought to proceed to repay massive for Penn Nationwide Gaming. Barstool has created a media empire and it’s proving to be a particularly worthwhile asset for Penn,” stated Dorta.

Associated Information Articles