Nevada Gaming Regulators Looking into Barstool Sports & Penn National in Wake of Sexual Misconduct Allegations Against Dave Portnoy
Edited by: TJVNews.com
As the sports betting industry continues to grow by leaps and bounds, it was recently reported by the Wall Street Journal that scrutiny of Barstool Sports is increasing. Barstool Sports is a digital media company that produces content focused on sports and pop-culture. Founded by David Portnoy in 2003 in Milton, Massachusetts, the company’s two primary investors are The Chernin Group and Penn National Gaming. Barstool Sports is currently headquartered in New York City.
The WSJ reported that Penn National Gaming Inc. is taking moves to acquire the media company to help it compete in the sports-betting business.
Gambling regulators in Nevada and Indiana have said they are looking into Barstool and Penn National in the wake of sexual-misconduct accusations against Portnoy, as the WSJ report indicated.
In February of this year, the New York Post reported that Portnoy, 44, was facing accusations from several women of sexual misconduct and rough sex that turned humiliating. Portnoy strongly denied the claims.
Three more women told Business Insider that Portnoy filmed their sexual encounters without permission — with one woman claiming he broke her rib during an aggressive tryst caught on camera, as was reported by the Post.
In his defense, Portnoy has filed a defamation lawsuit over the scurrilous allegations against him.
Speaking to the WSJ, Jay Snowden, the Chief Executive of Penn said that the company supports Portnoy and believes that the widespread media appeal of Barstool will be the key to the company’s future in the digital media and sports betting industry. Two years ago, Penn acquired a 36% stake in Barstool.
Penn also said that it expects to take full control of ownership of Barstool next year.
In 2021, it was reported that Slice, the innovative tech platform powering the largest network of pizzerias nationwide, announced a strategic partnership with Portnoy. Portnoy is also the creator of One Bite, the famed digital series in which Portnoy tastes and scores pizza in what he describes as “pizza reviews for the common man, by the common man.”
Portnoy, who has personally taste-tested and unapologetically reviewed pizzas from over 1,000 independent pizzerias across the U.S., is teaming up with Slice as an equity partner to empower independent pizzerias in every community.
Penn has its roots in the casino operating business, according to the WSJ report. They have said that the acquisition of Barstool will assist in drawing in gamblers and would be in better position to compete against other online betting brands. Barstool currently attracts millions of their social media platforms.
Because Portnoy is described as a controversial media personality, Penn’s support of him and Barstool comes as a risk, especially because of the latest allegations against him.
Snowden told the WSJ that “Barstool has grown its revenue by 150% since that initial investment two years ago and increased its social media base to 100 million followers.”
“They’re profitable, which is rare for a lot of digital media businesses,” Snowden said, adding: “They’ve delivered on what they said they would do.”
In a statement, the chairman of the Nevada Gaming Control Board Brin Gibson, said the board’s obligation “is to protect the reputation of the state and the reputation of the state’s gaming industry.”
The WSJ reported that in a public board meeting in December, Gibson said he had requested information from Penn because he was concerned about Barstool.
