Fans receive towels from Barstool Sports depicting NFL Commissioner Roger Goodell wearing a clown nose prior to the game between the Kansas City Chiefs and the New England Patriots at Gillette Stadium on September 7, 2017 in Foxboro, Massachusetts.

Penn National Gaming is betting big on its newest partner, Barstool Sports.

The casino company announced it's taking a 36% stake in the digital sports media company for about $163 million in cash and convertible preferred stock.

Shares of Penn National climbed more than 12% Wednesday following the news.

Penn will soon launch a Barstool Sportsbook brand in retail facilities and on its interactive mobile and online products, according to a news release announcing the deal. Barstool will promote Penn's physical casinos and interactive offerings for up to 40 years.

The stake is a big play for the regional gaming company to expand its exposure in sports betting, which will reduce its marketing costs and the price of customer acquisition. Penn is hoping it lures younger gamblers into its retail and online offerings as well.

On a call with investors, Penn National President and CEO Jay Snowden described the company's current gamblers as being in their mid-50s, while Barstool Sports' audience is largely in their 20s, 30s and 40s.

"With its leading digital content, well-known brand and deep roots in sports betting, Barstool Sports is the ideal partner for Penn National and will enable us to attract a new, younger demographic, which will nicely complement our existing customer database," Snowden said in the release.