ESPN Bet Coming to New York

Article ByDavid Weir

February 13, 2024

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Posted in: New York Gambling News, US Gambling News, US Sports Betting News

The hottest new U.S. sportsbook to launch in the past few years will soon make its debut in the nation’s largest sports betting market.

Penn Entertainment announced today that its ESPN Bet brand will be launching this year for New York sports betting. That’s after announcing it has acquired the license of the struggling WynnBET sportsbook.

The $25 million deal will see ESPN Bet gain a New York sports betting license, pending regulatory approvals of the deal. Penn says it plans to launch ESPN Bet in New York in 2024. It will be the operator’s 18th state market.

“This is an important development that will bring ESPN Bet to the largest regulated online sports wagering market in North America,” said Jay Snowden, Penn Entertainment CEO and president, in a press release.

“Together with ESPN, we’re building a brand that is synonymous with sports betting, and operating in the New York market is key as we grow ESPN Bet across the U.S.”

ESPN Bet’s Latest Expansion

When it launched in November 2023, Penn Entertainment made a big splash with ESPN Bet.

The branding of sports media giant ESPN and some hefty promotional spending saw the app hit a million downloads in just a week, and Penn’s share price was boosted considerably.

The operator missed out on a New York launch, as the state has a strict number of operator spaces. That was a blow for Penn, as New York’s sports bettors wager considerably more than in any other state.

In December 2023, the market hit its second consecutive $2 billion handle month, and a record high of $188.3 million in revenue.

Penn previously tried to launch in New York via its Barstool Sports brand. In 2021, it applied for a joint sports betting license with sports merchandiser Fanatics, which was rejected by the New York State Gaming Commission.

Fanatics then went on to launch its own sportsbook, which is now available in 16 states. Meanwhile, Penn went on to make the costly decision to drop Barstool Sportsbook in favor of a new deal with ESPN to form ESPN Bet.

This development will be welcome for ESPN Bet after the recent news of the collaboration between its old partner Barstool and its dominant rival, DraftKings.

Nail in the Coffin for WynnBET

It would be very surprising if ESPN Bet didn’t improve on the offering of the soon-to-depart WynnBET.

Operated by luxury casino resort operator Wynn Resorts’ online arm, Wynn Interactive, WynnBET is now only open for business where Wynn also has physical casinos.

It closed in eight states in 2023, and has since requested regulators to let it shut down its Massachusetts sports betting operation.

WynnBET will continue offering retail sports betting in Nevada and Massachusetts.

The closure of WynnBET in New York is hardly surprising. The operator had a terrible time in the market, making $10.6 million in revenues in a year of operating in the Empire State market. That’s compared to $60 million plus a month for leaders DraftKings and FanDuel.

Its revenues would not even have covered half of the $25 million license fee, although Wynn will have now made it back with the sale of the license to Penn.

The operation struggled to obtain even a 1% market share in the state. It holds the dubious distinction of being the only sportsbook in New York to make back-to-back monthly losses.