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00:03 Okay, now let's get over to another peculiar story in sports betting.
00:08 And I don't know that we have enough time in the segment to sort of break down
00:11 everything that has happened with Barstool, with Barstool leaving Penn and
00:15 Penn taking over ESPN.
00:17 And now Barstool not being the book but being with the book.
00:21 So I mean, look, it's a lot of confusion as far as I am concerned.
00:25 And by the way, I'm surprised that this quickly Barstool has pivoted over
00:30 to DraftKings from Penn.
00:31 But maybe you can, in two minutes or less,
00:33 sort of siphon through the big news from this story.
00:37 >> Yeah, I'll do my best, you're right.
00:40 It is a very interesting story with all these twists and turns.
00:43 But essentially, if I told you six months ago that Barstool would be partnering
00:48 with a gambling brand that was not named Penn, you would have looked at me like
00:52 I'm crazy because Penn had just finished spending half a billion dollars to buy
00:57 the brand Barstool Sportsbook was Penn's online sports betting app in like 15
01:02 states, and they had committed a huge amount of money.
01:04 It was integrated in all their podcasts and everything.
01:07 Then all of a sudden, Penn decided, you know what, this isn't it for us.
01:11 We're only getting 4% market share.
01:12 We're moving on to ESPN, which they're now paying $2 billion for
01:17 to basically use their name and do kind of the same thing.
01:20 Sold Barstool back for $1.
01:22 As part of that, there was this non-compete clause where Barstool wouldn't be able to
01:25 partner with another gambling company.
01:27 Now it appears, according to Sportico, we have Barstool moving on already to DraftKings.
01:34 Their reports are that they're potentially in talks to do a gambling affiliate deal
01:38 where basically Barstool advertises their odds.
01:40 Supposedly, it's in the low eight figures, which is around $10 million.
01:45 Only a fraction of what DraftKings has paid companies like MetalArk Media and
01:49 Fandulous Pay companies like The Ringer to do similar kind of marketing deals.
01:52 So early reactions are that this is just kind of a no-brainer, good move for DraftKings.
01:58 And it seems like the stock market agrees.
02:00 DraftKings climbed about 4% yesterday right after this news broke.
02:05 And Penn, in turn, fell about 3.7% on the day.
02:09 So initially, you know, it's just kind of seen as, wow, I can't believe that the non-compete only lasted six months.
02:16 Maybe this could eat into some of the customers that Penn took over with it from Barstool to ESPN.
02:22 We'll have to see how that plays out.
02:23 But yeah, just a really fascinating story here.
02:26 Another twist and turn in the whole Barstool-Penn saga and DraftKings sort of getting involved.
02:31 It seems like they like to get involved when, you know, companies like PointsBet and Fanatics are talking about, you know, merging and jacking up the price there.
02:38 So not surprising to see that Barstool is the brand trying to take advantage of this situation.
02:44 And it'll be interesting to see once we get more reports and more details come out over the next few months.
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