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Assessment: FMA subscribers…don’t miss the “FMA Wed #1 – Prep” message that I posted prior to this one. Scroll up! As for my topic here…
I am not too concerned about the ESPN merger with PENN when it comes to DKNG. The pop on PENN will be short lived, as will the negative effect on DKNG. If you hold PENN, it’s a very nice boost. PENN could have great future prospects, but I expect a pop, profit taking and then we will see where the stock settles out. Eventually I think it will do well with the merger simply due to the brand recognition of ESPN and all it means for PENN’s exposure. Will ESPN Sportsbook be a good brand, that’s a whole other question.
From a pure sportsbook perspective, I think PENN made a mockery of the Barstool Sportsbook brand. Barstool Sportsbook made Bovada look like an elite level book in how they operate…and that’s saying something. The promos were dumb, they limited people almost immediately, and I have yet to hear any positive reviews from legit bettors (semi-pro or even advanced recreational bettors) who used the sportsbook. I talk to gamblers every day and when people would tell me prices or action they got, or simply talk about the books they used, I rarely heard Barstool Sportsbook in that mix. It was usually DKNG, FD, MGM, Caesars/WillHill and PointsBet. Barstool was behind Bet Rivers in how often someone said the name to me! LOL
To say I am not a fan of the Action Network would be putting it quite mildly, but I have to give credit when it is due, they did put together a good breakdown on the situation. It’s not Pulitzer Prize stuff, but it hits the points. Here’s the link: https://www.actionnetwork.com/legal-online-sports-betting/why-barstool-sportsbook-failed
A key point in the article is “Stoolies skew younger and have a lower net worth, meaning they have a shorter gambling outlook and fewer dollars to play with.”
People always ask me why I don’t go after the “Stoolies” crowd more for The Sharp Plays. Stoolies are pains in the asses. Now if some of you reading this enjoy Barstool Sports, that’s all good. I have never listened to their podcasts nor read any of their articles, but I follow a few of them on Twitter and I find the stuff they do there as humorous. As an outdoors person I like Sydnie Wells coverage and content specifically. KellyInVegas would have been my #1, but she’s not with them anymore. Anyway, I find that the majority of people who call themself a “Stoolie” are 16-25 years old, no responsibility and even less maturity, and about $13 in their wallet with the equivalent in IQ. They will bet $12 of their $13 and when it loses they will whine and cry like a little bitch, blaming everyone else but themselves. Picture the prototypical entitled teenager whose parents did everything for them…got that picture…that’s a Stoolie! These people do not make for good sportsbook clients which is essentially part of the thrust to the Action Network article. I would rather have a sportsbook with 50 people in the 25-45 year old crowd, male, with careers as opposed to a million Stoolies. I’ll make more money with a million fewer headaches.
In terms of Portnoy, and I am just talking purely on his business acumen (he is loaded with controversy, that I don’t care to investigate or educate myself on). However, pure business…Portnoy turned a business he started in his basement where he handed out newsletters on the street roughly 20 years ago into something that PENN bought for half a billion dollars just over a decade and a half later. Does he do everything right in business, no…nobody does…but props to him for putting in the time and building a brand we all know. Does he do everything right in his personal life, I have no idea nor do I care, I am just talking business here.
Anyway, DKNG will take a hit this week, PENN will get a big boost. We’ll see how it shakes out in the weeks to come. I am still a long-term fan of DKNG though.
Good luck in your trades!