ESPN Bet comes to the Big Apple.
Penn Entertainmentthat operates the sports betting platform, will pay Hotels in Wynn $25 million for market access, he said Tuesday. It's the same amount Wynn paid the state of New York to operate there.
Wynn Interactive, a subsidiary of Wynn Resorts, received a mobile sports betting license in New York in 2021. Penn did not, missing out on the action in the country's largest sports betting market.
In the two years since New York launched online sports betting, at least $35.7 billion has been wagered in the state. For all but one month during that period, it has had a higher level of betting than any other state.
At the time the state awarded the licenses, there was much speculation that Penn lost one for his Barstool Sportsbook due to the controversy surrounding Barstool founder Dave Portnoy. Neither the New York State Gaming Commission nor the company ever confirmed this.
But last year, Penn sold Barstool back to Portnoy for $1, after paying $551 million.
The transaction came as Penn made a $1.5 billion deal over 10 years, plus $500 million in equity warrants, to license one of the most recognizable brands in sports: ESPN.
When ESPN Bet launched in mid-November, well after the start of the National Football League season, it was in about 17 states and had about 2% market share. But he experienced noticeable improvement almost immediately. For example, it gained 7.4% market share in Pennsylvania in November, up from 3.7% in October.
FanDuel and DraftKings They still hold almost a duopoly nationally, with BetMGM and Caesars occupying the third and fourth positions. But Eilers & Krejcik estimated that ESPN Bet gained 8% market share when it launched in November, good enough for a third-place position.
Bank of America analyst Shaun Kelley wrote in a note Friday that ESPN Bet could be a surprise beneficiary of Taylor Swift fans tuning into the NFL, and specifically Sunday's Super Bowl, due to the singer's relationship. with Kansas City Chiefs tight end Travis Kelce.
Now, if New York gaming regulators approve the transfer of the license to Penn, ESPN Bet could provide new and potentially formidable competition in the country's largest sports betting market.
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