Jay-Z's Sports Betting Company Suffers Setback Amid Partner/Barstool's David Portnoy Scandal
Nov. 8 2021, Published 4:52 p.m. ET
Jay-Z's sport betting company with Barstool Sports founder David Portnoy was not selected by the New York state gaming commission amid Portnoy's rough sex allegations.
The 44-year-old internet celebrity was accused of being sexually violent by multiple women and filming them without consent.
According to sources, the state's gaming committee met on Monday to choose two groups to offer mobile or online sports betting. However, the delegation did not select Jay Z and Portnoy's company for a license after being placed fourth behind another group called Bet 365.
Reports indicated that the two groups recommended by the gaming commission to launch online sports betting were the consortium of Bally Bet -BetMGM, DraftKings, and FanDue, along with the teams from Caesars -Wynn Interactive, Empire Resorts, PointsBet, and Rush Street Interactive.
The insider claimed the online sports betting would be expected to begin operating in New York ahead of this year's Super Bowl. The state anticipates nearly $1 billion in revenue next year to be split between the state and the operators.
The informant also revealed the groups chosen by New York's gaming commission have conceded to divide over 51 percent of their profits to the state, which exceeded far beyond the split in most states where online sports betting is legal.
For example, in New Jersey, the operators share only 13 percent of their revenue with the state, while Connecticut took in 13.75 percent of profits from their operators. Other states charged as low as 6.75 percent.
Both Jay Z and Portnoy are still yet to comment on the reported verdict from the state gaming commission.