Penn Entertainment CEO Jay Snowden announced that the gambling firm would be divesting Barstool Sports and selling it back to its founder, David Portnoy. This decision comes as Penn Entertainment enters a $1.5 billion deal with Disney's ESPN to launch a sports betting platform called ESPN Bet. Snowden emphasized that Portnoy is the ideal long-term owner for Barstool Sports, given its nature as a brand and company. The move was prompted by the realization that Barstool's product was becoming outdated due to reliance on a third-party platform. The partnership with ESPN represents a shift towards the sports betting industry, with the new platform set to launch in 16 states where gambling is legal. Following this news, Penn Entertainment's stock rose by over 9%, while rival company DraftKings saw a decline of more than 10%.