Last updated: December 27, 2023
Penn Entertainment’s ESPN Bet, an online sportsbook, has officially launched across 17 US states.
In states like Arizona, New Jersey, Pennsylvania, Massachusetts, Illinois, and Ohio, players can now place bets with the sportsbook on the ESPN Bet app and website.
The result of Penn’s $1.5 billion (£1.2 billion/€1.4 billion) collaboration with ESPN, the most prominent sports media company in the US and owned by Disney, is ESPN Bet.
Penn will run ESPN Bet following the agreement, and ESPN will advertise the app on its broadcast and online platforms.
Barstool Sportsbook, an existing sports betting app, has been rebranded as ESPN Bet. Penn stated in August that it paid $1 to return Barstool Sports to its founder, Dave Portnoy.
Pending final approvals, Penn CEO Jay Snowden expressed excitement about the simultaneous launch of ESPN Bet throughout the 17 states where the company conducts online sports betting.
The CEO emphasized the strategic partnership with Disney-owned ESPN while discussing Penn’s third-quarter results. According to Snowden, this collaboration will significantly expand Penn’s digital ecosystem, encouraging re-engagement with millions of consumers in retail and digital databases and generating attractive cross-selling opportunities.
Penn will initially have ten years to use the ESPN Bet brand. Additionally, there will be a ten-year extension option. In addition to the $1.5 billion licensing agreement, Penn has granted ESPN the right to purchase shares at a roughly $500 million value.
If market share goals for online betting are met by ESPN Bet, the company’s ownership may increase even more for ESPN. If these performance goals are met, ESPN can buy an additional 6.4 million common shares.
Vice-president of sports betting at ESPN, Mike Morrison, stated in an interview with iGB earlier this year that he saw the introduction of ESPN Bet as a logical next step for the sports network.
When considering the calculated entry into the sports betting market, an ESPN representative pointed out that the project started in 2018 with an eye toward modifications before PASPA was repealed.
The representative described how ESPN’s approach to the sports betting industry has changed, stressing the importance of using betting odds when narrating the events of forthcoming games. As mentioned in Penn’s Q3 update, the launch of ESPN Bet is expected to positively impact the company’s long-term adjusted EBITDA potential, potentially adding up to $1.0 billion.
An estimated 200 million people are expected to watch the first wave of integrations that ESPN will implement. The SportsCenter anchors Elle Duncan, and Scott van Pelt will spearhead an advertising campaign for the launch of ESPN Bet.
ESPN boasts over 105 million unique digital visitors each month, making it the most significant sports media brand in the United States.
Over 370 million people follow it on social media, and 25 million use the ESPN+ streaming service. With 41 million global followers on TikTok, ESPN is also the most prominent brand.
This effectively ends ESPN’s previous collaborations with companies like DraftKings and Caesars as it becomes the sportsbook’s exclusive partner. Both companies were previously mentioned as possible partners for the broadcaster’s sportsbook.
Chris Rogers, chief strategy officer at Penn Entertainment, added that ESPN has implemented additional policies for staff members to preserve objectivity.
Penn employees will not be permitted to wager at any location or via any digital or mobile platform owned and run by their employer.
Nonetheless, ESPN employees are not barred from placing bets because the company is not an operator. ESPN is creating staff guidelines as a result. These will include on-air talent to guarantee that ESPN upholds its strict standards of journalistic integrity and that insiders continue to be independent.
ESPN and Penn have also developed content guidelines for ESPN Bet. These will be relevant to social media marketing.
According to Penn Entertainment’s Chief Strategy Officer Chris Rogers, “odds attribution to ESPN Bet, on ESPN programming where applicable” will be included in the marketing services for ESPN Bet.
Editorial integrations, access to mutually agreed ESPN talent, television commercials, and social media are other things that will be involved. The steps to “suppress” marketing for people who have self-excluded or are excluded for other reasons will be in place, Rogers stressed. He guaranteed that these integrations would follow strict guidelines and protocols to avoid marketing to clients who aren’t eligible.
Additionally, advertising will not include or target individuals under 21. Additionally, no advertising will air “on a medium unless 73.6% of the audience is anticipated to be over 21.
Will is a former Grosvenor croupier who relocated to Chicago from London in 2013. Not only is he a highly skilled poker player, but he is also an expert in the art of deception, gambling cons, and the world of crypto. Now he uses his knowledge and experience to write and edit detailed reviews of online casinos in a bid to help players avoid online scams and losing their money to rogue gambling sites.
