Fri. Dec 1st, 2023

Penn Entertainment (NASDAQ: PENN) announced its third-quarter results on Thursday, with the focus on the upcoming launch of ESPN Bet. The Pennsylvania-based regional casino operator stated that ESPN Bet, its new online sportsbook brand, will be launched simultaneously in 17 states on November 14. This will allow bettors in those jurisdictions to access the mobile application ahead of the Thanksgiving football games. The timing is strategic as Thanksgiving Week is known as “Rivalry Week” in college football, and this year, Monday Night Football will feature a rematch of the most recent Super Bowl between the Kansas City Chiefs and the Philadelphia Eagles. The clarity surrounding the ESPN Bet launch has led to a 14% surge in Penn shares on Thursday, with trading volume more than triple the daily average. Jay Snowden, Penn CEO, mentioned that ESPN will be implementing exclusive integrations and an advertising campaign with their 200 million loyal fans as part of the launch. Following Penn’s separation from Barstool Sports in August, the partnership with ESPN provides a new opportunity in the sports betting industry. Under the terms of the deal, Penn will pay ESPN $1.5 billion over 10 years to use the ESPN Bet brand. Analysts have been cautious about the new online sportsbook’s ability to compete with the dominant FanDuel and DraftKings. However, ESPN’s strong brand within the sports industry could work in its favor. ESPN Bet is expected to contribute to Penn’s profitability in its interactive unit, despite potential losses in the current quarter. According to Snowden, the losses are expected to peak in the fourth quarter and the first quarter of 2024, but the online unit is anticipated to generate losses throughout the year.

By admin

Related Post