As Penn Nationwide Gaming works to reopen its casinos and gaming operations, Barstool founder Dave Portnoy is itching to return to his roots.
Portnoy, an avid sports activities bettor who started betting on shares after skilled sports activities paused because of the coronavirus, advised CNBC’s Jim Cramer he is leaving the inventory buying and selling sport behind when sports activities make their return.
“I am having fun with the inventory stuff … It has been enjoyable,” he mentioned in a “Mad Cash” interview, “however I am a sports activities man. I am a sports activities bettor. I need sports activities again, and when it comes again that is going to be the place my focus is. However, for now, I’m having enjoyable with the inventory sport.”
Portnoy, who launched the Barstool sports activities and tradition weblog in 2003 and made thousands and thousands promoting a stake of the corporate to Penn earlier this yr, has chronicled his buying and selling actions throughout the coronavirus pandemic — each the great and the unhealthy — for his thousands and thousands of social media followers, to the ire of some Wall Avenue veterans. He additionally impressed a brand new technology of buyers to enter the market.
Portnoy revealed in April that he started day buying and selling with $Three million on an outdated E-Commerce account, even admitting to dropping $647,000 in someday. He bombastically tweeted earlier this month “I am the captain now” and that he has surpassed Warren Buffett in relation to selecting shares.
Exterior of the short-term buying and selling exploits, Portnoy made a long-term play when he bought a 36% stake in Barstool to Penn in January in a deal value $450 million. Barstool will launch a sportsbook as a part of the deal, and he expects it will likely be a “dominant participant within the sport” and an additive to the on line casino operator.
“I wished extra fairness in Penn after we did this deal. I requested [Penn CEO Jay Snowden] as a result of I’m a risk-taker. I am a sports activities gambler by nature,” Portnoy mentioned. “I can not be extra assured in what we’re constructing. Clearly, I am biased, however I put my cash the place my mouth is.”
Penn Nationwide, which closed its on line casino doorways because the U.S. was placed on lockdown to cease the unfold of the coronavirus, has now reopened a majority of its areas and returned 11,000 staff again to work, Snowden mentioned. About 50% of Penn’s slot machines and desk video games are additionally open for service, and restaurant capacities stay restricted, he added.
Snowden appeared on display alongside Portnoy and Barstool CEO Erika Nardini for the interview.
“We introduced on Friday that we now have over 70% of our properties reopened and we’ve a transparent sight for the remaining 10 properties to be open within the coming weeks,” Snowden mentioned. “We’re off to a superb begin. We really feel like we’re going nearly as good at this time as we felt within the final Three-Four months, clearly, and every single day is getting a bit higher.”
Thirty of its on line casino and racing properties are actually open with social distancing and security protocols in place. The properties span 19 states throughout the nation.
Penn’s inventory worth collapsed greater than 90% from its February peak to the March trough as Wall Avenue and the U.S. started grappling with the coronavirus pandemic, and the journey and leisure industries took among the greatest losses. Since bottoming at $Three.75 per share, the inventory has elevated eightfold, closing Monday’s session at $31.43.
The market values Penn at $Four.Three billion, whereas its sports activities betting rival DraftKings is valued at about $14 billion. Nardini advised Cramer that she expects these odds to be reversed sooner or later.
“We’ll drive an incredible quantity of worth for Penn. Have a look at what’s occurred round their inventory, have a look at what’s occurring round our model throughout the pandemic,” she defined. “We’re simply getting began, and I believe you are going to see an unbelievable stage of development, not just for Barstool Sports activities but additionally for the sportsbook.”