Barstool Sportsbook Quickly Expanding, But Don’t Expect App In Las Vegas

Penn National Gaming (PNG), the company that owns the Tropicana and M Resort in Las Vegas, announced its quarterly and 2020 earnings this week. However, there was a noticeable lack of questions or comments about PNG’s Las Vegas properties.

PNG CEO Jay Snowden expressed during the earnings call that 2020 was “one of the most difficult and surreal years” for the company on both a personal and professional level. Despite a decrease in annual revenue, the company maintained optimism for its future, particularly with the prospects of its online casino and Barstool Sportsbook.

A year ago, Penn National Gaming (PNG) bought a 36% stake in Barstool Sports. This acquisition has significantly altered the business operations of the regional casino operator. Penn National is so impressed with this collaboration that it is considering the potential purchase of the remaining shares of the sports media giant in the future.

However, don’t anticipate Barstool establishing a base in Vegas.

Barstool Sportsbook expanding across the US

During the earnings call, PNG praised the launch of its Barstool sports betting app, available online and on mobile, in Pennsylvania last year. The Barstool Sportsbook app was released in Michigan in January.

Barstool Sportsbook’s next target state should be Illinois. Subject to regulatory approval, PNG plans to roll out the app just before March Madness.

Snowden stated that the Barstool Sportsbook app and retail outlets will keep expanding into new states at a rate of every three to five weeks throughout this year. The company’s primary objective is to be functional in at least 10 states by the conclusion of 2021.

Snowden provided details on the various states that Barstool Sportsbook is targeting for its online and retail locations:

Having successfully launched both our online sportsbook and casino in Michigan, we are now prepared to do the same in New Jersey. Our plan also includes launches in Colorado, Virginia, West Virginia, Iowa, and Tennessee. Furthermore, we are in a position to capitalize on opportunities in Maryland and Louisiana, pending the speed of legislative progress in Ohio and Massachusetts.

PNG is considering operating Barstool Sportsbooks in several states, but Nevada is notably absent from the list.

Penn National Gaming considered Las Vegas Strip

PNG initially revealed its partnership with Barstool Sports and considered establishing a location in Las Vegas. The company expressed interest in launching a Barstool Sportsbook, but only if it could be situated on the Vegas Strip.

The M Resort is not located on the Vegas Strip. Therefore, Tropicana became the center of attention as the first Barstool Sportsbook in Nevada. Although this seemed logical initially, it doesn’t seem like PNG is fully committed anymore.

Since acquiring Tropicana in 2015, the company’s feelings towards Las Vegas have been varied. Initially, PNG was enthusiastic about the prospects of owning a Vegas Strip property and intended to make it the focal point of a hub-and-spoke structure for its properties.

The concept behind this model was to establish Tropicana as the focal point of the company for PNG. It was intended to serve as the central “hub”, with the company’s nationwide casinos acting as “spokes” that contribute to its Las Vegas operations.

Don’t expect to see Barstool Sportsbooks in Las Vegas

Shortly after the creation of the hub-and-spoke plan, things changed. The spread of legal sports betting across the country altered PNG’s perspective on its future.

Once more, the regional casino operator would utilize its Barstool Sports brand to promote its properties, rendering the Vegas Strip property unnecessary.

In March 2020, Tropicana officially went on the market. A month later, the land on which the casino is located was sold to Gaming & Leisure Properties Inc. for $307.5 million. This was $50 million less than what PNG paid for the casino.

PNG continues to run the casino at Tropicana for now. However, it doesn’t appear that the property is included in PNG’s future plans.

Recently, Penn National announced a partnership with Choice Hotels, including M Resort as one of the participating properties. However, the announcement did not include Tropicana.

This exclusion may indicate to the public that PNG is likely to sever ties with the Las Vegas casino, which it previously viewed as the core of its business model.

Consequently, the chances seem low for a Barstool sports betting app to make its way to Nevada.