ESPN, PENN Entertainment strike $2 billion sports betting deal
PENN Entertainment (PENN) shares are trading higher as the company is partnering with ESPN, which is owned by Disney (DIS), in a $2 billion sports betting deal. As part of the deal, PENN Entertainment sold its shares of Barstool Sports back to founder Dave Portnoy. Yahoo Finance Live discusses the online gambling landscape.
Video Transcript
BRAD SMITH: And lastly, we got to check in on how one of the biggest names, the trending tickers in the Yahoo Finance platform online this morning are doing. And one of those, of course, none other than Penn Entertainment coming off a major deal with ESPN.
And of course, they gave us a little bit more insight into their financials as well this morning. Taking a look at Penn shares over the past three days and much of that move. Let me just put this on intraday so you can see that move to the upside there. And you're seeing that up by about 12% to start off today's session.
DIANE KING HALL: Yeah, exactly. We were excited to see that news cross last night that ESPN is finally coming out with a sports betting product, I guess, in partnership with Penn Entertainment. But as part of that, Penn Entertainment divesting itself of Barstool Sports, selling its stake back to founder Dave Portnoy.
BRAD SMITH: Dave Portnoy, yeah.
JULIE HYMAN: I was blanking on Dave Portnoy's first name.
BRAD SMITH: Davy Day Trader, as he calls himself.
JULIE HYMAN: And so really interesting, we have been seeing some of the other online gambling companies falling in early trading as well, as well as Flutter, the parent of FanDuel, which reported its earnings today. Penn reported earnings that came out a little bit better than estimated. But as you said, really overshadowed by this agreement. DraftKings down 7% over the past two days. We're going to be talking to an analyst later about this whole landscape. I think it's really interesting.
BRAD SMITH: It's fascinating right now, especially at a time where we're going to be ramping up into what? NFL season, football season. Even though I missed out on my kelly green Eagles Jersey, guess what? There's a lot of bets that are still going to be made on that Eagles this year.
JULIE HYMAN: I wonder what the size is of globally real football betting versus American football betting?
BRAD SMITH: Probably outsized here.
JULIE HYMAN: We got to look at this. It's outsized here, but I mean, globally, I'm curious.
BRAD SMITH: I mean--
JULIE HYMAN: I don't know.
BRAD SMITH: We'll see.
JULIE HYMAN: We'll look it up. We'll look it up.
