MGM, Draft Kings scrapped tie-up with Dave Portnoy for NY sports betting license

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MGM Resorts, DraftKings and Fanduel had thought of teaming up with Barstool Sports to use for a New York on-line sports-betting license this summer season — and scrapped the thought due to Dave Portnoy’s previous erratic habits, sources informed The Post.

Instead, the trio — whose bloc was one among two that gained the high-profile license from the state gaming fee on Monday, beating out a gaggle led by Jay-Z, Fanatics and Portnoy’s Barstool Sports — selected Bally’s Corp. to fulfill a state requirement that they’ve 4 events of their bid, in accordance with sources near the scenario.

The tie-up with Ballys occurred this summer season, a number of weeks after a intercourse tape surfaced that confirmed a unadorned Portnoy yanking a leash on a collar across the neck of 22-year-old mannequin Sydney Raines.

Portnoy and Raines both said the encounter was consensual, with Raines including that she had “no regrets.” But shares of Barstool Sports proprietor Penn National Gaming obtained hit on the time, and it was sufficient to rattle execs at MGM, DraftKings and Fanduel, in accordance with sources.

Jay-Z’s consortium finally lost out on the sports betting bid.
Getty Images for The Rock and Ro

“One of the reasons Bally’s was chosen was they were the least offensive,” a supply with direct information of the talks mentioned. “They saw a risk with Portnoy.”

Monday’s consequence — which places the MGM group in line to separate an estimated $500 million in earnings with the state subsequent year — was a shocker for many insiders, who till lately had anticipated New York would select the Jay-Z consortium. In addition to the rapper’s star energy and Fanatics’ clout in sports merchandising, Barstool Sports already has a profitable on-line betting operation.

Model Sydney Raines mentioned what occurred on the tape was consensual.
Leah Perry Photography

“Bally’s didn’t have the market share to bring to the table,” one shocked supply famous. “Barstool had market share.”

A gaming official on Monday insisted the state’s rejection of Jay-Z/Barstool/Fanatics group, which had deliberate so as to add a fourth associate if it gained a license, had nothing to do with sexual misconduct claims towards Portnoy, saying the bids had already been rated early final week.

But the MGM camp had hedged its bets simply the identical. (“We always considered ourselves a class above Barstool,” one supply near the MGM bidding group mentioned, explaining why they nixed the Portnoy tie-up.)

On Thursday, Business Insider printed a bombshell story detailing allegations from ladies who accused Portnoy of overly tough and violent intercourse.

Three of the ladies mentioned they’d intercourse with Portnoy, calling the expertise “frightening and humiliating,” with two saying he choked them and filmed them with out permission. Portnoy responded on Thursday that allegations he has a kinky penchant for tough and violent intercourse are “100 percent not true.”

As Portnoy mounts a battle, it now seems to be extra uncertain whether or not Barstool Sportsbook will win state gaming licenses, an analyst requesting anonymity mentioned. Penn National earlier within the year predicted a ten to 12 p.c market share by this time, the analyst mentioned. It’s at the moment about 7 p.c, the analyst estimates.

DraftKings has a 20 p.c share of the US on-line sports betting market.
AP

Indeed, even earlier than these new allegations Barstool Sportsbook was not meeting its personal market share projections, the analyst mentioned. Presently, FanDuel has a number one roughly 40 p.c share of the US on-line sports betting market. DraftKings is at 20 p.c, with BetMGM, which on Monday introduced a partnership with Madison Square Garden, at 13 p.c.

Penn National, which in January 2020 purchased 36 p.c of Barstool, has seen its shares slide practically 20 p.c for the reason that Portnoy allegations have been printed. On Tuesday, they have been lately up 1.3 p.c at $59.75. They had been buying and selling above $130 in March.

Another bidding group — Caesars, Wynn Interactive, Empire Resorts, PointsBet and Rush Street Interactive — additionally have been awarded a license on Monday. New York required 4 events to be in every bid as a result of it’s taking 51 p.c of the betting revenue. In return, it’s giving the winners a duopoly on sports betting in order that they have restricted competitors.

FanDuel has a 40 p.c share of the market.
Bloomberg by way of Getty Images

New York State is predicted inside a number of years to generate $1.2 billion in playing income, representing six p.c of the nationwide take, in accordance with a Truist analyst report. That would make New York the state with the fourth largest sports betting income, with California being the largest with $3.4 billion. New Jersey is projected to be $800 million and Connecticut $200 million.

Barstool didn’t return calls for remark.

BetMGM, FanDuel and DraftKings additionally didn’t return calls.