ESPN Bet is expanding its reach as New York’s newest online sports betting operator.
The PENN Entertainment-owned brand has officially launched in the Empire State after an arduous licensing process that was recently completed. Last week, the New York State Gaming Commission (NYSGC) unanimously approved PENN’s deal to acquire Wynn Interactive Holding’s sports betting license in New York for roughly $25 million. The approval allowed PENN to launch ESPN Bet after WynnBet’s shuttering in the state.
“We’re excited to launch ESPN BET in New York and introduce our sportsbook to the largest regulated online sports wagering market in North America,” said PENN Chief Technology Officer Aaron LaBerge. “This launch expands our digital footprint and brings ESPN BET to a state where ESPN has a significant presence. We look forward to providing New Yorkers with an unparalleled, integrated betting and media experience.”
ESPN Bet announced its New York launch on Friday with the help of ESPN personalities Stephen A. Smith and Mike Greenberg with Smith appearing in a promo video.
ESPN Bet is available to New Yorkers after the sportsbooks launched operations last November. The sportsbooks had an initial launch in 17 states and would later add North Carolina to its list of licensed markets earlier this year. ESPN Bet underwent a soft launch in New York on Sept. 26 but is now available to all registered players across the state.
Quite the journey for ESPN Bet
ESPN Bet became a reality last year after PENN decided to rebrand Barstool Sportsbook.
In 2020, PENN acquired a 36% stake in media brand Barstool Sports for $163 million. The minority stake allowed PENN to launch Barstool Sportsbook two years later in more than 10 U.S. markets. PENN would acquire the remaining 64% of Barstool Sports in 2023 for $388 million. PENN would later sell Barstool back to its founder Dave Portnoy for $1.
The launch of ESPN Bet nationwide has come at a heavy cost for PENN.
The company generated $1.6 billion in revenue in Q2 2024 mirroring results from the same period last year. PENN’s Interactive segment, which includes ESPN Bet, reported $232.6 million in revenue during the quarter but closed the period with an adjusted EBITDA loss of $102.8 million. In Q2 2023, PENN’s Interactive business posted $257.5 million in revenue.
That same quarter, the business reported an adjusted EBITDA loss of $12.8 million.
