1/ Additional color from Penn on early days for Barstool app.

Full filing here —> https://www.sec.gov/Archives/edgar/data/921738/000110465920108042/tm2031632-1_424b5.htm (h/t @financeamir).

For a bit of context, total PA handle in Sept 2019 was $194mm. The COVID-impacted sports calendar + PA’s growth ramp historical comps ~wobbly ... https://twitter.com/financeamir/status/1309093277233274880

2/ … but doing some rough math suggests that PA did about $35mm in handle a weekend in Sept 2019. So $11mm looks good by that measure.

But PA is also growing - the state did $164mm in handle in July 2020 vs $60mm in July 2019 (Again, wobbly). So if 2020 in PA = ~2.75x 2019 ...

3/ … then we end up with PA’s expected per-weekend Sept handle at closer to $90mm (rounding down since we’re doing a lot of guessing here). And, if Barstool is expanding the market vs taking share, the number should get larger.

Still ...

4/ … if you combine that with the other metrics Penn provided, you can reasonably shorthand this as “Barstool grabbed double-digit market share in PA on launch,” which is obviously a good headline for the company.

Things to watch for: (i) Do they make share or take share ...

5/5 … (ii) how much of that handle was driven by promotional credits, (iii) what does the company tell us about second deposits, and (iv) how does the download to deposit hold up as they move out of early adopters?