PENN Entertainment announced that ESPN Bet will launch in 17 states on November 14. [Image: Shutterstock.com]
Specific timetable
ESPN is the latest big name to enter the US sports betting scene, and its upcoming online sportsbook has been highly anticipated. PENN Entertainment, which will operate the show, announced Thursday through its third-quarter earnings report that the new platform will officially launch on November 14 in 17 states. This simultaneous launch will go ahead as long as there are no last-minute regulatory hurdles.
Some of the notable markets where ESPN Bet will launch include Arizona, Massachusetts, Illinois, New Jersey, Pennsylvania, and Ohio. One big state that won’t be getting an ESPN bet any time soon is New York, as PENN has never pursued a license in the Empire State due to the hefty 50% tax rate.
The launch will take place the week before Thanksgiving
The wide launch will take place in the week before Thanksgiving, a time when a lot of big games are held in both the college and professional sports scenes in the United States. One of the high-profile games at that time will be the November 21 NFL game between the Philadelphia Eagles and Kansas City Chiefs, a rematch of Super Bowl LVII.
Capitalize on the ESPN name
The technology powering ESPN Bet will be the same as that used by PENN-owned TheScore Bet in Ontario. Some of the new sports betting features will include in-game bonuses, mini markets, and prop betting.
The Disney-owned media giant will help ESPN bring attention to the launch through a variety of integrations for its 200 million-plus fan base across various media. This will include a new ad campaign featuring SportsCenter anchors Elle Duncan and Scott Van Pelt. More campaigns are being worked on over the coming months in an attempt to attract the largest possible number of customers.
It will see ESPN take in $1.5 billion in cash over the course of a decade
PENN Entertainment has a licensing agreement with ESPN that replaces the previous sportsbook offering through the Barstool brand. This new deal will see ESPN receive $1.5 billion in cash over a decade and the option to purchase an equity stake in PENN. PENN has the option to exit the deal after years three and seven if it fails to gain a certain level of market share.
Competitive market
The US sports betting sector is already highly competitive, with many operators having already left the market or merging with other brands over the past few years. High customer acquisition costs mean that only a few large operators dominate the market. FanDuel is currently the industry leader, closely followed by DraftKings, with BetMGM a distant third.
ESPN has already integrated odds into its broadcasts and has a number of betting-related shows currently running.
While it only controlled about 5% of the market when it had Barstool-branded sportsbooks, PENN Entertainment CEO Jay Snowden hopes ESPN Bet can capture up to 20% market share by 2027.
