It’s been good to know ya, Dave Portnoy—it seems ESPN, Disney’s sports network, has more clout with Penn Entertainment than he does. In August, Penn Entertainment struck a 10-year, $2 billion deal with ESPN for the media giant to lend its name to an online sports betting platform.
The betting arm will go by ESPN Bet. As for ESPN the network, well, they could further invest in ESPN+ as a streaming product, LSR reports. Just about every network has taken that route. ESPN also has multiple existing sports league rights deals. Those could be conducive to having a stream with integrated bet slips, similar to the BetVision product from Genius Sports being utilized by Fanatics Sportsbook for the NFL this season.
So sometime in November, perhaps around Thanksgiving, ESPN Bet comes online. Barstool Sports returns to Mr. Portnoy.
Execs revealed some of the details of the emergence of ESPN Bet during the Global Gaming Expo (G2E) in front of investors and analysts. Penn CEO Jay Snowden and Mike Morrison, ESPN vice president of sports betting and fantasy, spoke about the transition, according to Yogonet Gaming News.
Snowden said most of the features on ESPN Bet should be present at the outset of operations. The app should be live for seven weeks of the regular NFL season. Followed by the playoffs, of course.
When asked, Snowden cited theScore Bet’s success in Ontario as an approach for ESPN Bet.
According to Steve Wieczynski of independent investment bank Stifel, the theScore Bet success played a key role in Disney coming on board. In its report, Wieczynski said Penn intended to spend about the same on promotions as its peers.
Sportsbooks will not be prohibited from advertising with ESPN. Analyst Barry Jonas of Truist believes limited media spots could be available to competitors if they are favorable to ESPN.
The app is expected to debut in the 16 states in which Penn is licensed upon its November launch.
During a recent presentation to the Massachusetts Gaming Commission, Penn made sure the regulator understood there would be no change in the management structure or operations.
ESPN had talks with DraftKings Sportsbook and Rush Street Interactive before deciding on Penn, the Wall Street Journal reported.
ESPN’s venture into the space comes amid a softening stance on sports betting from parent company Disney. In recent years, the company has been more receptive to the idea, culminating in this significant deal.
The decade-long pact between ESPN and Penn does have an opt-out after three years, should they fail to reach a market share of around 10 percent.
