Penn National plotting Barstool-branded “entertainment destinations” in mobile betting states
CEO Jay Snowden says in-game betting numbers are lower than expected but claims “it is still so early”
Penn National Gaming is developing a number of Barstool Sports-branded standalone entertainment destinations described as “virtual sportsbooks” in an effort to increase brand awareness.
During PNG’s Q3 financial analyst call yesterday, CEO Jay Snowden told analysts that these venues would be a mix between sports bars and a virtual sportsbook with a night-time component also being considered.
The venues will be launched across states where mobile betting is live and will be equipped with the technology to allow customers to bet virtually.
“It won’t be an actual retail sportsbook,” Snowden said. “But with technology it will feel like a virtual sportsbook in the daytime and there will likely be a night-time component that [Barstool Sports CEO] Dave Portnoy has lots of ideas on.
“This will be an opportunity to get the brand out there even more than it is today and have another efficient way to acquire new customers in key markets,” he added.
Thus far the operator has spent nothing on marketing its new Barstool Sportsbook product traditionally, but Snowden said it would seek to market the brand via traditional channels in new states as it launches.
In Pennsylvania, the app has been downloaded 61,000 times since its launch in September with 48,000 of those having been converted into registered players.
Snowden said the app had experienced a 64% conversion rate from registered customers to FTDs.
He said 95% of downloads had come from new users outside of the PNG ecosystem.
The other 5% were mychoice loyalty customers and they accounted for 20% of app handle.
“Our mychoice customers are very loyal,” Snowden said. “Their time spent on the app is higher than the average player.”
Snowden suggested the app’s in-game betting numbers had been lower than expected and the operator had started to use push notifications to promote the feature.
“We’re talking to Dave Portnoy and everyone at Barstool but it’s still so early. The number isn’t bad, but it has room for growth,” Snowden said.
Revenue for Penn Interactive (listed as other in the financials, alongside some of PNG’s racing venues) was $23.7m in Q3, up from $12.4m the previous year.
Adjusted EBITDA for the period saw a $14.6m loss during the quarter, compared to a $25m loss last year.