A new report from Sportico suggests that the non-compete instilled on Barstool Sports as part of the Penn Entertainment sale could be over after the Super Bowl.
Sportico cited anonymous sources saying that Barstool is finalizing a marketing deal with DraftKings Sportsbook that will be signed once the non-compete elapsed.
Penn sold Barstool Sports back to founder Dave Portnoy in August 2023 for a single dollar. The company spent around half a billion dollars on the Barstool deal, first purchasing a stake in the company and later buying it out entirely.
At the time, there was speculation around the other conditions of the sale, including whether or not the company would have non-competes in place when it came to serving as a marketing affiliate for other sportsbooks. Prior to Penn’s acquisition of Barstool in 2020, the company regularly served as a sports betting affiliate for brands, including FanDuel.
It could be back in that position soon. Per the story, the deal with DraftKings would include incorporating DraftKings odds into Barstool content and referring its audience to the sportsbook. In return, Barstool Sports is said to be receiving low eight figures in compensation.
When the deal for Penn to work with ESPN Bet and dump Barstool was announced, the industry said that the contingencies of the deal did include a non-compete period, but the duration was unclear. Should the Sportico story prove to, the length of the non-compete appeared to be for a single football season.
ESPN Bet did not even launch until well into football season, going live in mid-November. In the interim, Barstool Sports ceased to promote Barstool Sportsbook, which remained live until the brands officially switched.
DraftKings declined to comment on the story to SBC Americas.
Barstool Sports has undergone some major changes since coming back under Portnoy’s ownership. CEO Erika Ayers Badan announced she was resigning earlier this month.
