ESPN Bet, the popular sports betting platform, is set to make its way to New York City, the largest betting market in the United States. Penn Entertainment, the operator of ESPN Bet, has agreed to pay Wynn Resorts $25 million for market access, the same amount Wynn paid to operate in New York state. This move will allow ESPN Bet to compete in the lucrative New York market, where over $35.7 billion has been wagered since online sports betting was launched two years ago.
Wynn Interactive, a subsidiary of Wynn Resorts, was granted a mobile sports betting license in New York in 2021. However, Penn Entertainment was not awarded a license, causing them to miss out on the opportunities presented by the state’s massive betting market. Speculation arose at the time that Penn lost out on a license for its Barstool Sportsbook due to controversy surrounding Barstool founder Dave Portnoy. Although this was never confirmed by the New York State Gaming Commission or the company, it is widely believed to be a contributing factor.
Last year, Penn Entertainment sold Barstool back to Portnoy for $1 after initially paying $551 million. This transaction coincided with Penn’s $1.5 billion deal to license ESPN Bet for 10 years, along with $500 million in stock warrants. ESPN Bet launched in November and quickly gained market share across multiple states. In Pennsylvania, for example, its market share increased from 3.7% in October to 7.4% in November.
Currently, FanDuel and DraftKings dominate the national sports betting market, with BetMGM and Caesars holding the third and fourth positions. However, ESPN Bet managed to secure an 8% market share when it launched in November, placing it in third position, according to Eilers & Krejcik.
Bank of America analyst Shaun Kelley believes that ESPN Bet could see a boost in popularity among Taylor Swift fans who tune into the NFL and the Super Bowl, as the singer is in a relationship with Kansas City Chiefs player Travis Kelce. This potential increase in viewership could further solidify ESPN Bet’s position in the market.
Pending approval from New York gaming regulators, ESPN Bet’s entry into the New York market could present a significant challenge to existing competitors. With its strong brand recognition and growing market share, ESPN Bet has the potential to become a formidable player in the nation’s biggest sports betting market.
Overall, ESPN Bet’s expansion into New York City marks an exciting development in the sports betting industry. As competition heats up, bettors can look forward to more options and opportunities for wagering on their favorite sports teams and events. With its successful track record in other states and the backing of the prestigious ESPN brand, ESPN Bet is poised to make a splash in the Big Apple.
