While at the Nasdaq to ring the closing bell Thursday, Barstool Sports founder Dave Portnoy made the bold claim above. He was there to accompany the leadership of Penn National Gaming, Inc. (PENN:Nasdaq) to commemorate their recent acquisition of 36% interest in Barstool.
So what did he mean exactly? What does Penn's recent move represent for the market, can it indeed be "saved"? In this article, we'll explain the deal and even take a look at where the involved industries are headed next.
When Penn National Gaming made this $136,000,000 (approximately $163 million, comprised of approximately $135 million in cash and $28 million in non-voting convertible preferred stock) move, it represented the success of two emerging industries:
Independent online media
Newly legalized online sports gambling
While Dave Portnoy is notorious among both sports and news media establishment's, his sports media company has continued to change the game. From being dragged out of the Super Bowl, to being grilled on HBO's "Real Sports", to the current meme war with a NASCAR reporter, Dave has never played by the rules.
Nor has he had to. As one of the world's most successful independent sports media organizations, Barstool has a license for rebellious acts. Unfettered by traditional corporate leadership, they create engaging and raw content that has set them apart from the pack. Brick by brick, Barstool has been built into a formidable news entity, thanks in part to the uncontrollable nature of the internet.
Penn themselves were no doubt encouraged to make this move by the landmark 2018 Supreme Court case "Chris Christie vs. NCAA ." This ruling struck down the Professional and Amateur Sports Protection Act (PASPA) that essentially limited legal sports gambling to Nevada. Now every state has the ability to legalize sports gambling, 14 already have, 7 have passed bills that will take effect soon, and 24 are moving towards legislation. This now empowers gaming companies like (PENN:NASDAQ) to offer online sports betting in a much larger market. Enter Barstool's young, tech-savvy audience, ready and rearing to get in on some online wagering.
This fusion of 2 emerging businesses will no doubt turn out to be a powerful combo.
Will it be enough to "save the stock market"? Well, that's certainly still up for debate.
What IS clear is that independent online media and legal sports gambling are two extremely exciting sectors, bursting at the seams with potential. These two sectors may very well turn out to be good investments looking forward, and the Penn X Barstool deal makes that abundantly clear.
Looking even further into the future of these industries, we must consider other emerging high tech fields. Blockchain and cryptocurrency have been in the news recently as Bitcoin flirts with a valuation of $10,000. Despite the recent SEC rejection of the Welshire Phoenix Bitcoin ETF.
Over the last few days crypto has followed the stock market into the red, could Portnoy "save" the crypto market as well?
Two blockchain projects reflect the same emerging industries.
$STEEM allows users to post content on an uncensorable platform with built in monetization. It has a blogging centric platform steemit.com (which this article is posted on) that has been recently acquired by Chinese crypto billionaire Justin Sun. One can imagine a young Dave Portnoy posting on this site if it had existed in Barstool's early day. It's decentralized nature allows you to build a completely independent, controversial brand (like Barstool) without fear of demonitization or censorship. The Steem blockchain has also added a Youtube alternative video platform: 3speak.online, with similar attributes.
$NLC2 is a crypto fantasy sports platform that utilizes it's token to offer extremely low fees and fast withdraws. Unlike traditional platforms like Fan Duel and Draft Kings, No Limit Fantasy Sports is able to avoid the friction associated with the transfer of US dollars. While NLC2 currently only deals with fantasy sports (technically a game of skill), they are looking to move into traditional sports gambling as well. They have recently released an app for both android and iOS - future developments on their roadmap include a debit card for the platform that will allow for instant withdraws directly from your account. The project is currently seeking a $5 million raise to expand operations, one could imagine collaboration with a large, established gaming company.
While not on the Nasdaq, you can easily purchase these two tokens on platforms such as VCCExchange.
While the market is in freefall, experiencing one of the worst weeks since the crash of 2008, Penn National Gaming is rising today. Will this be a sign of things to come? Will these exciting new industries continue to generate enough momentum to go against general market sentiment?
Only time will tell, but if the stock market does get "saved", we know who to thank.
Until next time,
Cheers,
