PENN Entertainment is experiencing increased activity on its ESPN BET sports betting app compared to its previous Barstool brand, reveals analysts and state data.
In Maryland, mobile wagers on ESPN Bet surged to $42.4 million in December, up from $16.4 million under the Barstool name a year ago. The performance positioned Penn third in the state, behind industry leaders FanDuel and DraftKings, according to a Bloomberg report.
In Iowa, Penn saw mobile sports wagers reach $18.8 million in December, more than double the $7.2 million in the previous year. Despite the promising start for ESPN Bet, Penn faces challenges in its pursuit of a larger online gaming presence, including high costs and established competitors.
“Preliminary data suggest the book improved on its predecessor’s small market share — and did so during a key seasonal period,” Brian Egger, a senior analyst with Bloomberg Intelligence, was quoted as saying in the report.
Pennsylvania-based casino operator Penn Entertainment initially launched its sports betting business under the Barstool name but later relinquished it due to challenges associated with its controversial founder, David Portnoy.
Last year, the company signed a $2 billion deal to license Disney’s ESPN brand. The partnership entails Penn operating ESPN Bet, while ESPN leverages its online and broadcast platforms to promote the app. The December results followed the successful launch of ESPN Bet on Nov. 14.
According to Macquarie Group analyst Chad Beynon, Penn’s share of sports betting revenue in November across six states increased to about 12%, up from about 2% when using the Barstool name. Analysts view the early reports for ESPN Bet as positive, noting its potential to attract a wider customer base, including women, the report said.
ESPN has been actively promoting the app through its TV shows, website, and other outlets, incorporating betting odds from the site in its stories. However, the sports betting business is challenging, and even industry leaders like FanDuel and DraftKings have struggled to achieve profitability.
There is no guarantee that Penn’s ESPN deal will be a success for the company, as evidenced by ESPN Bet paying out more in winnings and promotions to players than it received in wagers in Maryland, the report said. ESPN Bet has also adjusted its bonus offers and new app sign-ups are beginning to plateau, according to Jefferies International analyst James Wheatcroft in a Jan. 7 report.
Original article: https://www.yogonet.com/international/noticias/2024/01/15/70390-penn-entertainment-39s-espn-bet-app-outshines-barstool-securing-stronger-wagers-and-market-share
