ESPN Bet competes for market shares in online sports betting in New York

Natasha Tikasz October 25, 2024

SiGMA news

ESPN Bet competes for market shares in online sports betting in New York

Debuting on September 27th, the sportsbook ESPN Bet, owned by PENN Entertainment, made its inaugural appearance in the online sports betting arena in New York. With a mediocre appearance, it ranked 7th in total handles in its first week of operations in the Big Apple city. According to the New York State Gaming Commission, ESPN Bet took in $3 million in bets in the first three days compared to market leaders like DraftKings and FanDuel, who each cleared $196 million in the week ending 29th September. Notably, ESPN Bet outperformed smaller platforms such as Resorts World and Bally Bets, taking in a $9.1 million handle in the week ending October 6th and generating $1.1 million in gross gaming revenue (GGR).

Despite the unremarkable debut figures, New York is already showing signs of success. Penn Entertainment is looking to gain traction in this demanding territory. The daily handle per ESPN Bet user was already 296% higher than in any other state it operates in, and the average deposit amount per app is 100% higher. The ESPN media user app already boasts an estimated 10 million users in New York, with Penn banking on cross-promotion between ESPN Bet and the ESPN app. As PENN is currently working on integrating these two apps into the US market, it hopes to compel a substantial number of these users to gravitate to its sports betting platform.

ESPN Bet replaces Wynbet in New York

The Empire State currently allows only nine digital wagering licences at once. Wynnbet’s July exit from the digital betting business in this state permitted Penn Entertainment to facilitate its transaction to acquire Wynn Interactive Holding’s online sports betting license. Wynn offloaded its licence after it concluded business in the highly demanding state. Within the first week, ESPN Bet’s $9.1 million handle suggests a positive early reception, already outperforming any figures Wynnbet achieved in New York for the year.

Penn executives shared key statistics about ESPN Bet’s performance during an investor event held at M Resort & Casino in Henderson, Nevada. According to PENN executives, ESPN Bet has accumulated 1.8 million users since its inception, resulting in an 85% growth in its overall customer base.

The app’s average deposit amount in New York alone after its highly anticipated debut was 100% higher than in other states. Since ESPN Bet launched in November 2023, PENN’s hold rate has increased from 6.7% to 9%.

Q3 results adjustments

PENN has since adjusted its financial outlook for ESPN Bet in Q3 2024. While initial forecasts were higher, they now anticipate a much smaller loss. They attribute the improvement to a better-than-expected hold rate driven by an increased focus on parlays and lower promotional expenses.

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