Last updated: December 27, 2023
ESPN Bet disrupts the US sports betting landscape with a stellar start, amassing 1.1 million downloads in its debut week, eclipsing FanDuel’s record. ESPN Bet’s rapid ascent, claiming 70% of total sportsbook app downloads, hints at a changing dynamic in the market, posing a formidable challenge to industry leaders like FanDuel and DraftKings.
ESPN Bet is off to a great start with its goal of upending the US sports betting market. In its first week of operation, the sportsbook saw over 1.1 million downloads after launching on November 14 in 17 states. This surpasses the previous best of 486,000, which FanDuel set at the Super Bowl in 2022.
Since the platform’s launch in multiple major markets, including New Jersey, Pennsylvania, Ohio, and Arizona, ESPN Bet has dominated the most popular lists in app stores. During the initial phase, ESPN Bet was responsible for roughly 70% of all sportsbook app downloads, according to JMP Securities.
After the US federal ban on sports betting ended in May 2018, FanDuel and DraftKings emerged as the two leading players. Together, they hold roughly 77% of the market, with BetMGM coming in a distant third with 10%.
The current market is expected to be disrupted by the introduction of sportsbooks connected to popular brands like ESPN and Fanatics. To draw in bettors, operators heavily invest in advertising; in the third quarter of 2023, DraftKings spent $313 million in marketing.
ESPN, a division of Disney, has been actively promoting the new sportsbook endeavor on social media, during broadcasts, and in commercials. The well-known network incorporates odds into a variety of content types, including its fantasy sports platform.
In August, ESPN Bet’s operator, PENN Entertainment, obtained a ten-year initial license to use the media giant’s name. This $1.5 billion deal required PENN to give up its previous sportsbook under the Barstool brand.
After initially investing approximately $551 million to purchase the media company Barstool Sports, PENN sold it back to Dave Portnoy for just $1.
Penn’s share price increased by approximately 7% due to the profitable opening week performance during ESPN Bet. Because of the significant interest from wagerers, Bank of America analysts upgraded the stock from a neutral position to a buy recommendation.
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.
