Penn Entertainment announced its agreement to acquire Wynn Interactive Holdings’ mobile sports betting license in New York. This acquisition paves the way for the launch of ESPN Bet in the largest regulated online sports wagering market in North America.
The deal, which involves a $25 million payment, is subject to regulatory approval by the New York State Gaming Commission. Once approved, Penn expects to roll out ESPN Bet in New York sometime in 2024.
Meanwhile, Wynn is informing customers in Massachusetts that they have 30 days to settle their accounts before the mobile sports betting app goes dark. The company had informed the Massachusetts Gaming Commission of its decision to leave the state. They do intend on keeping their sportsbook at Encore Boston Harbor Casino.
Penn previously owned Barstool Sports, but underwent a rebranding last August to replace it with ESPN Bet. The company has quickly established itself as a formidable player in the sports betting space since its national rollout in mid-November 2023. In the states where figures are available, ESPN Bet has consistently ranked in the Top 5 for handle across all 11 states and has even reached the third position in some markets.
New York has been the largest legal betting market in the United States since the introduction of mobile wagering availability over two years ago.
With more than $37 billion in handle generated during the 25 months that online betting has been available, New York is the only state to have surpassed $2 billion in monthly handle. In fact, it achieved this feat three times in 2023. Furthermore, New York reclaimed the national monthly record for operator revenue in January 2024, with sportsbooks totaling $211.7 million in revenue.
PENN Entertainment’s entry into the New York market has been long anticipated since its rebranding as ESPN Bet. With the acquisition of WynnBET’s license for $25 million, Penn has finally found a path into the Empire State. The price tag for the license is only a slight premium, considering it still has approximately eight years remaining on its 10-year term.
While ESPN Bet has shown its capabilities in other states, it will face significant challenges in the New York market. The dominance of FanDuel and DraftKings, which accounted for over 78 percent of the $1.96 billion mobile handle in January, poses a formidable obstacle for ESPN Bet. Even when considering Caesars and BetMGM, the percentage of market control by these four operators reaches nearly 95 percent.
Additionally, ESPN Bet will also have to contend with Fanatics Sportsbook, formerly known as PointsBet, which will eventually rebrand in New York. Competing with these well-established operators will require ESPN Bet to showcase its competitive advantages and offer compelling promotions to attract bettors.
It is predicted by financial analysts ESPN Bet will attain a market share of around 9 percent in its operational states for the full year 2025.
