As Penn Country-wide Gaming works to reopen its casinos and gaming operations, Barstool founder Dave Portnoy is itching to return to his ancestors.
Portnoy, an avid sports bettor who began betting on stocks after professional sports paused due to the coronavirus, disclosed CNBC’s Jim Cramer he’s leaving the stock trading game behind when sports make their return.
“I’m liking the stock stuff … It’s been fun,” he said in a “Mad Money” interview, “but I’m a sports guy. I’m a sports bettor. I want sports service, and when it comes back that’s going to be where my focus is. But, for now, I am having fun with the stock game.”
Portnoy, who founded the Barstool sports and culture blog in 2003 and made millions selling a stake of the company to Penn earlier this year, has documented his trading activities during the coronavirus pandemic — both the good and the bad — for his millions of social media followers, to the ire of some Divider Street veterans. He also inspired a new generation of investors to enter the market.
Portnoy revealed in April that he established day trading with $3 million on an old E-Trade account, even admitting to losing $647,000 in one day. He bombastically tweeted earlier this month “I’m the captain now” and that he has capped Warren Buffett when it comes to picking stocks.
Outside of the short-term trading exploits, Portnoy made a long-term fritz when he sold a 36% stake in Barstool to Penn in January in a deal worth $450 million. Barstool require launch a sportsbook as part of the deal, and he expects it will be a “dominant player in the game” and an additive to the casino operator.
“I coveted more equity in Penn when we did this deal. I asked [Penn CEO Jay Snowden] because I am a risk-taker. I’m a sports gambler by quality,” Portnoy said. “I can’t be more confident in what we’re building. Obviously, I’m biased, but I put my money where my mouth is.”
Penn Chauvinistic, which closed its casino doors as the U.S. was put on lockdown to stop the spread of the coronavirus, has now reopened a majority of its locations and returned 11,000 wage-earners back to work, Snowden said. About 50% of Penn’s slot machines and table games are also uncover for service, and restaurant capacities remain limited, he added.
Snowden appeared on screen alongside Portnoy and Barstool CEO Erika Nardini for the vetting.
“We announced on Friday that we now have over 70% of our properties reopened and we have a clear sight for the remaining 10 gears to be open in the coming weeks,” Snowden said. “We’re off to a good start. We feel like we’re going as good today as we endure in the last 3-4 months, obviously, and every day is getting a little better.”
Thirty of its casino and racing properties are now open with communal distancing and safety protocols in place. The properties span 19 states across the country.
Penn’s stock quotation collapsed more than 90% from its February peak to the March trough as Wall Street and the U.S. began wrestle with the coronavirus pandemic, and the travel and entertainment industries took some of the biggest losses. Since bottoming at $3.75 per divide up, the stock has increased eightfold, closing Monday’s session at $31.43.
The market values Penn at $4.3 billion, while its cavorts betting rival DraftKings is valued at about $14 billion. Nardini told Cramer that she expects those odds to be modified in the future.
“We’re going to drive a tremendous amount of value for Penn. Look at what’s happened around their lay in, look at what’s happening around our brand during the pandemic,” she explained. “We are just getting started, and I think you’re present to see an incredible level of growth, not only for Barstool Sports but also for the sportsbook.”