New York Approves ESPN Bet’s Launch After Penn’s $25M Acquisition of WynnBet License

On Monday, September 23, the New York State Gaming Commission (NYSGC) voted in favor of transferring the digital sports betting license from Wynn Resorts to Penn Entertainment. This key decision opens the door for ESPN Bet to go live in the state, potentially as soon as the weekend.

Delayed Launch Due to Licensing Approvals

Both Penn Entertainment and ESPN had been anticipating the NYSGC vote, as the launch of ESPN Bet hinged on this crucial approval. Originally, company executives aimed for the platform’s debut by the end of August. However, the NYSGC, which last convened in June, did not schedule a special meeting for the license transfer vote, leading to the delay.

New York state has a limit of nine digital sports wagering licenses, all of which were initially allocated at the start of 2024. WynnBet, one of the early license holders, decided to exit the state’s digital betting market in July. Penn Entertainment seized the opportunity and agreed to acquire WynnBet’s New York license in February for a sum of $25 million.

At Monday’s meeting, Penn’s executive vice president, chief strategy and legal officer, Chris Rogers, indicated that there were still “a couple of boxes to check” regarding the platform’s technology. He added that the company’s goal was to launch ESPN Bet in “several days, perhaps a soft launch in advance of the weekend.”

If everything proceeds as planned, ESPN Bet could be operational in time for the fourth week of the NFL season. This timing is significant, with all three New York-based teams playing in games. The Dallas Cowboys face off against the New York Giants on Thursday, September 26, while the New York Jets take on the Denver Broncos and the Buffalo Bills meet the Baltimore Ravens on Sunday, September 29.

ESPN Bet is currently available in 19 states for sports betting and five for online casinos, thanks to a partnership between Penn Entertainment and ESPN formed in 2023. The platform first went live across 17 U.S. jurisdictions on November 15, 2023.

During Monday’s meeting, Rogers addressed questions from the commission about how ESPN Bet could impact the New York market and whether it would expand its reach to college-aged individuals. One commissioner noted that WynnBet had struggled to gain significant market traction in the state. Rogers agreed, pointing out that ESPN Bet could bring in new customers rather than simply siphoning s from existing platforms.

“We attract a different kind of bettor,” Rogers explained. “So we would expect to grow the market. I think we’ve seen handle on those markets (we launch in) go up, as people try a new platform.”

Commitment to Responsible Marketing

The conversation shifted to responsible marketing practices, specifically how ESPN Bet would approach advertising to college-aged audiences and whether there would be any partnerships with universities. Rogers assured the commission that Penn Entertainment does not have any college-based partnerships and emphasized the company’s commitment to ethical marketing.

Rogers said that Penn “takes very seriously not marketing to underage people,” and reiterated that Penn and ESPN Bet have no intention of targeting individuals under the legal gambling age of 21. However, he acknowledged that some general marketing might be visible to those under 21, but emphasized that this would not be targeted.

“There are restrictions around college marketing, and our goal is to meet those standards,” Rogers stated, reaffirming Penn Entertainment’s stance on responsible marketing.

New York’s online sports betting market, which launched on January 8, 2022, is among the largest in the U.S., and every major operator has sought a foothold in the state. Current players include Bally’s, BetMGM, Caesars Sportsbook, DraftKings, FanDuel, Resorts World, and Rush Street Interactive. The market has seen limited changes in platforms since launch, with the most notable being Fanatics Sportsbook’s acquisition of PointsBet’s North American assets in August 2023, which rebranded in March.

With the entry of ESPN Bet, New York will return to its cap of nine active operators following WynnBet’s exit earlier in the summer. Rogers noted that ESPN Bet’s entry into the New York market would likely result in market growth rather than redistribution among existing platforms.

Penn Entertainment’s acquisition of WynnBet’s New York sports betting license is a crucial step in launching ESPN Bet in the state. The platform already operates in several jurisdictions across the U.S., and New York’s large, competitive market presents a significant opportunity for growth.

“We’re grateful to the New York State Gaming Commission for its approval, and we’re in the process of readying our product for launch in New York in the coming days,” a Penn spokesperson said.

ESPN Bet is poised to make an impact in the New York sports betting scene, potentially attracting a broader audience and growing the state’s overall market. The collaboration between Penn Entertainment and ESPN marks a significant move in the competitive world of digital sports betting, with New York as one of its key battlegrounds.

Source:

”ESPN Bet aiming to launch within days after getting NYSGC licence approval”, igamingbusiness.com, September 23, 2024.