Portnoy Plugs Penn Stock, Flirts with Florida Move in Interview

Barstool Sports founding father Saint David Portnoy is bullish on Penn Entertainment (NASDAQ:PENN) inventory and he’s unresolved to legal, tax-advantaged strategies to tighten his obligations to the federal government.

In an question earliest today with “Varney & Co.” on Fox Business, Portnoy was enthusiastic well-nigh the future tense for Penn. That makes sentiency because with the gambling casino operator announcing before this calendar week that it’s moving to gain Barstool inward its entirety, the bulk of his mesh worth comes by way of William Penn equity.

Portnoy also responded to assertions that he’s using methods often deployed past the ultra-wealthy to avoid paying their fair portion out of taxes. Critics exact he’s borrowing against his William Penn wager to avoid paying upper-case letter gains levies.

I don’t experience where all these tricks are coming from, but i don’t have them and I’m paying out the guts for it,” Portnoy said inward the interview. “So if you experience any small inside tricks on how to acquire around taxes legally, I’m all ears, but i pay off 50%. I finger the likes of an idiot.”

He also entertained the thought of establishing residence in Florida, which doesn’t experience a res publica income tax. He currently lives inwards high-tax New York. Portnoy wouldn’t be the number one to pretend that move. In 2020, the taxation bases inwards California and New House of York shrank by a combined $37.3 one thousand million while the taxation bases in FL and Lone-Star State jumped $30 one million million combined, according to IRS data.

Portnoy Bullish on Penn

Obviously, the Barstool Sports founder has unspoilt reason out to be bullish on Penn stock. As the shares rise, so does his sack up worth, but he’s frustrated the investment funds community isn’t sounding at the buy in inwards the right light.

“If you look at the William Penn stock, it trades with the rest of the play stocks almost lockstep for the past year, twelvemonth and a half. We don’t run same those guys,” Portnoy said. “Those guys are spending billions of dollars on advertising and literally burning money and losing hundreds of millions of dollars. And we craft exactly similar them. There’s no more real differentiation.”

With William Penn shares shoot down 46.29% o'er the yesteryear year, it’s non unreasonable to lay claim the identify is beingness treated to a greater extent the like a money-losing iGaming/sports wagering buy in than a gambling casino name. William Penn is the largest operator of regional casinos and those venues experience impressive margins.

His argumentation that Barstool Sportsbook operates differently than rivals is relevant because the byplay leverages the media entity’s vast database of fans in an elbow grease to cost-effectively convince them to sports bettors. That means the manipulator is spending significantly to a lesser extent on marketing than are competitors.

Penn Potential

Portnoy’s optimism on Penn gillyflower isn’t unfounded. It’s upward 18.28% since the bug out of the tertiary billet and the company’s digital business is nearing profitability.

“On the Interactive face of the business, management continues to put to death on their targets assign forth. If you go away backrest to come together to a year ago, PENN was guiding to an $80M loss for 2022. Now even out after adding $12.5M inward expenses around the CA ballot initiative, management remains committed to their $50M deprivation target,” wrote Stifel psychoanalyst Steven Wieczynski inward a recent note to clients.