PENN Entertainment has made a significant move by purchasing Wynn Interactive Holdings’ mobile sports betting license for $25 million. This deal paves the way for ESPN Bet to make its debut in the bustling New York sports betting market. Previously, PENN was on the sidelines when New York launched its mobile betting apps in January 2022. Now, with this acquisition, they’re stepping into the nation’s largest online sports wagering arena.
Approval and Launch Timeline
Before ESPN Bet can start accepting bets from New Yorkers, the deal needs the green light from the New York State Gaming Commission. If everything goes as planned, sports betting enthusiasts can expect ESPN Bet to start operations sometime in 2024. This move is seen as a strategic expansion for PENN, which rebranded to ESPN Bet after moving away from Barstool Sports last August.
New York: A Lucrative Market
New York has emerged as a powerhouse in the legal betting market in the U.S., generating over $37 billion in handle. In 2023 alone, it surpassed $2 billion in monthly handle three times, showcasing its massive potential for operators like ESPN Bet. However, entering this market comes with its challenges. FanDuel and DraftKings currently dominate, accounting for over 78% of New York’s $1.96 billion mobile handle in January. ESPN Bet will need to carve out its niche in this competitive landscape.
WynnBet’s Struggle and Exit
WynnBet’s journey in New York was short-lived. Despite launching just before Super Bowl LVI in 2022, it struggled to gain significant traction. The brand’s weekly handles were not impressive, and it couldn’t overcome its losses. This acquisition marks WynnBet’s exit from New York, leaving it operational only in Arizona, Michigan and Nevada. The brand’s withdrawal from Massachusetts and other states highlights the challenges faced by operators in the highly competitive U.S. sports betting market.
ESPN Bet’s Growth and Future Plans
ESPN Bet, initially launched in 17 states, is on an expansion spree after its rebranding. The acquisition of Wynn Interactive Holding’s online sports betting licenses is a testament to PENN Entertainment’s ambition to grow ESPN Bet across the U.S. With over 1.2 million app downloads shortly after its launch, including around 235,000 on its first full day, ESPN Bet has shown promising user engagement. The brand is also set to enter the North Carolina market through a partnership, indicating a strategic approach to expansion.
Competition and Challenges Ahead
ESPN Bet’s entry into New York is not without its hurdles. The market is currently led by giants like FanDuel and DraftKings, with a combined hold on a significant portion of the market share. ESPN Bet will need to leverage its brand and user experience to attract bettors in a state that generated $1.96 billion in handle and $211.5 million of gross revenue in January alone. The success of this venture will depend on ESPN Bet’s ability to differentiate itself and offer compelling reasons for bettors to switch or diversify their sports betting platforms.
In conclusion, PENN Entertainment’s acquisition of Wynn Interactive’s New York sports betting license for $25 million marks a significant milestone for ESPN Bet. As it prepares to enter America’s largest regulated online sports wagering market, all eyes will be on how it plans to compete with established players and carve out its space. With a strategic approach and a focus on user engagement, ESPN Bet could very well become a key player in the New York sports betting scene.
