Barstool Sportsbook isn’t a household name across the country, but there’s a chance it could stick in Kentucky.
There’s no official word if the PENN Entertainment-owned sportsbook will pursue a Kentucky sports betting license. But given the state’s uncommon age restriction and Barstool’s key demographics, it could be a good match.
The latest quarterly earnings report hinted that Barstool Sportsbook aims to break even for the calendar year. Experts forecast $250 million in revenue for Barstool in 2023.
PENN’s first-quarter revenue climbed to $1.67 billion, about $80 million more than initial projections. But adjusted EBITDAR dropped roughly 3% to $478 million in the first three months.
In other words, the first quarter was so-so for Barstool Sportsbook and its parent company.
But there’s a chance that a Kentucky launch — should Barstool Sportsbook Kentucky materialize — could help boost some of those numbers.
One of Barstool’s target demographics is younger than most sportsbook operators
And that’s where it could capitalize in Kentucky.
Kentucky is one of the few jurisdictions with an 18-year-old betting age requirement. Only New Hampshire, Rhode Island, Washington DC and Wyoming are the same.
The key demographic for most sportsbook operators is young men. Recently, a report from Ipsos (an agency that provides research within the gambling sector) showed that 68% of gamblers are men. Additionally, 39% of bettors are under the age of 35. The report outlined that 51% of those gamblers a white and that 44% earn more than $100,000 annually.
Bartstool’s identity seemingly fits right into that. According to Similar Web, a site that tracks online traffic data, nearly 69% of the company’s audience is male. In addition, 27.32% of the site visits are from people ages 25-34. Also, 19.8% come from ages 35-44, but a sold 16.92% come from those ages 18-24.
That 16.92% is where Barstool could carve itself a share of the Kentucky market.
Barstool Sportsbook is not available in any state offering 18-plus gambling. Should the company opt to go for a Kentucky license, it would be Barstool’s first 18-plus market.
Given the sizable demographic between 18 and 24, Kentucky could be a hotbed for younger bettors.
DraftKings may be the only major sportsbook fighting for the younger audience
It’s worth noting that no sportsbooks have explicitly said they’d offer betting in Kentucky to individuals below the age of 21.
DraftKings kept the door open, though, telling PlayKentucky it is “committed to following age restrictions set forth by each individual jurisdiction.” The operator does offer 18-plus betting in New Hampshire and Wyoming.
Caesars is the first KY operator to secure a partnership with a horse track to operate an online sportsbook. It has said that, despite the 18-year-old minimum requirement across the state, it would only accept bets from gamblers at least 21 years old.
Additionally, all signs point to FanDuel and BetMGM following Ceasars’ approach in Kentucky.
The point being: Barstool Sportsbook may have little competition for 18-year-old bettors should it choose to secure a license and follow the state guidelines.
Could Kentucky student-athletes become Barstool athletes?
With NIL’s skyrocketing power, more athletes accept sponsorship deals with companies. But it gets tricky when it comes to gambling operators.
Let’s take a look at Kentucky’s state-wide NIL rules. The rules outline a handful of banned endorsement deals, which include controlled substances, adult entertainment … and sports betting.
In February, PENN Entertainment completed its acquisition of Barstool Sports for roughly $388 million. Given that official shift, it would appear that any Barstool endorsement deal for a Kentucky collegiate athlete would be from a gambling entity.
Barstool isn’t just a betting company; it still produces content unrelated to gambling. But the recent shift officially signals a changing of the guard. And it also means that athletes in Kentucky likely cannot accept any Barstool NIL deal.
Could Barstool have a bigger market share in Kentucky?
In short, maybe.
Across the country, the Barstool Sportsbook has an online market share of just 5.5% over the past 15 months. That’s not great. But not a dealbreaker by any means.
That percentage falls below big names like FanDuel Sportsbook, DraftKings Sportsbook, Caesars Sportsbook and BetMGM Sportsbook. Fighting for fifth place is expected, as it remains difficult for any relatively new sportsbook to keep pace with the household names.
But the sportsbook has a track record of success in some states.
Look at Michigan. Barstool Sportsbook boasted a 10% market share in terms of volume and 7.4% when it came to revenue last year. That’s a sign of legitimate progress since it launched in Michigan in 2021. And Michigan offers the usual cast of top names within the industry.
In Massachusetts, where Barstool Sports was born, it has ranked No. 4 ahead of Caesars Sportsbook in March and April so far.
So there’s a recipe for success. While it isn’t always a hit in every state, there’s the potential for Barstool Sportsbook to stick. And in Kentucky, where there’s a rabid college sports fanbase and plenty of young bettors, there’s a chance Barstool Sportsbook could find its footing.