When sports bettors.
This week, the first state reports in jurisdictions with ESPN BET have begun to trickle in. After launching on Nov. 14, ESPN BET generated Maryland for the month. The figures represent a gross gaming revenue (GGR) market share of 10.3%, along with a share of around 6% by handle. Nationwide, ESPN BET is projected to attain market share of 6.1% GGR during the fourth quarter of 2023, according to Barclays.
In August, PENN announced the launch of the ESPN BET platform in partnership with one of the world’s largest sports brands. On the back of double-digit GGR market share in Maryland, PENN shares surged nearly 10% in Monday’s session, clearing $26 a share.
A rival’s take 3x4c2g
Since DraftKings’ launch of online sports betting in 2018, CEO Jason Robins has seen a wave of competitors enter the space. Two of them, PointsBet and FOX Bet, underperformed expectations despite receiving the backing of major media brands.
In 2020, near the height of the COVID-19 pandemic, Fanatics acquired the U.S. assets of PointsBet, executives of the parent company largely blamed the failure of the NBC deal for PointsBet’s inability to gain traction in North America.
While Robins has seen a slew of aggressive marketing efforts, including ones that have been somewhat irrational, he noted that he has not observed such tactics from ESPN BET thus far.
“I think there’s been a pretty rational launch from PENN and ESPN,” Robins said during an appearance at the third annual Craig-Hallum Online Gaming Conference. “We expect to continue to see that. I think they are playing for the long term.”
Early data suggests that PENN is growing the national market for sports betting, Truist Securities analyst Barry Jonas wrote in a note. While it is too early to ascertain the venture’s ability to retain customers, Jonas has seen indications that wagering among females has increased since ESPN BET’s debut.
Beyond Maryland, ESPN BET appears to be producing solid numbers elsewhere. In reported a November handle of $27.5 million, an all-time high for PENN in the state. The handle represented market share of about 5.3% on the month. When partnering previously with Barstool Sports for its branding, PENN’s sportsbook handled approximately $17.5 million in wagers during the same month last year.
Promotional intensity 602j69
On the month, promotions as a total percentage of handle at ESPN BET hit 39% in Maryland. By comparison, BetMGM, all topped levels of 30% with the metric in the opening month of online sports betting in the state, according to JMP Securities.
Since ESPN BET is late to the game, a number of Wall Street analysts expect the venture to spend heavily on promos over the first few months of operations. By losing first-mover advantage, ESPN BET faced higher acquisition costs than would typically be the case for a new state launch, JMP Securities analyst Jordan Bender wrote in a research note.
For the launch of its sports betting brand, the network also changed the name of its semi-weekly sports wagering show from The Daily Wager to ESPN BET Live. The network previously moved the program back to its Bristol studios from the Las Vegas Strip.
🗣️ @ESPNBet Live delivered strong viewership in its debut month of November pic.twitter.com/1Z8nDsXQpP
— ESPN PR (@ESPNPR) December 6, 2023
Elsewhere, data from mobile insights consulting firm GWS Magnify found that ESPN BET ranked as the third-most popular app among sports bettors for the month of November. When the firm assessed the amount of time spent per app, ESPN BET maintained a market share of 11% nationwide, and only DraftKings and FanDuel ranked higher. ESPN BET also has the largest percentage of millennial bettors on its app, with 44% of s under the age of 36.
ESPN BET is live in 17 states, most notably Massachusetts. On a national basis, PENN is optimistic that the venture will attain online sports betting market share of 20% or more by the end of 2027.
