Penn National plummets 20% after weak earnings and allegations against Dave Portnoy

• Penn National Gaming, which owns a 36% stake in Barstool Sports, fell 21% on Thursday.
• The stock fell after the company reported weak third-quarter earnings Thursday morning.

Penn National Gaming Inc. fell 21% on Thursday after the company fell short of earnings expectations and Insider published sexual misconduct allegations against Dave Portnoy.

Penn, which operates casinos and racetracks, owns a 36% stake in Barstool Sports, a massive digital media brand founded by Portnoy. Penn is using the Barstool brand to launch online and retail sports betting operations and sports bars around the country.

Penn reported third-quarter earnings early Thursday morning, after which its stock fell sharply from its Wednesday close of $72.73 to $65.67 by 10:45 a.m. ET, when Insider published it's story on Portnoy.

Three women, whose identities are known to Insider, said they had engaged in violent consensual sex with Portnoy that "turned into frightening and humiliating experiences that have taken a toll on their mental health," Insider reported. Two of the women said he choked them and filmed the encounters without their consent.

Portnoy has denied the allegations, with his attorney telling Insider in an email the women's claims "embody half-truths, are highly misleading, lack appropriate context, and appear to have been provided to you by individuals whose motivations and trustworthiness should at least have been fully vetted."

Portnoy also denied the allegations in videos shared on Twitter, calling the encounters described in the story as consensual.

After Insider published the report, Penn stock continued to decline, closing out the day at $57.40, the lowest it's been in over a year.

Penn did not immediately respond to Insider's request for comment.