At arguably the busiest ESPN BET dominated the conversation at the Las Vegas conference.
In August, PENN Entertainment sports betting brand. After essentially swapping Barstool Sportsbook for ESPN BET as the company’s online sports wagering platform, PENN remains on track for a mid-November launch.
In recent weeks, opinions have varied on whether ESPN BET will vault into the top three sportsbooks in of national market share by 2026. Wayne Kimmel, managing partner of SeventySix Capital, is extremely bullish on the new venture.
“I think they have to get there and I think they will get there,” Kimmel asserted, before adding that he expects ESPN BET to eventually ascend to the top spot.
The value add 4nt3h
One of the most compelling reasons why Kimmel, one of the nation’s leading venture capitalists in the sports betting space, believes ESPN BET can surge to No. 1 centers on ESPN’s global capabilities. In some respects, reports that ESPN could be sold to a leading tech company such as Amazon, Google, or Apple have created considerable uncertainty. On the contrary, Kimmel views the possibility of a mega-merger as a net positive.
After retiring from Disney in 2021, CEO Bob Iger returned to his old gig last November following the dismissal of Bob Chapek, his handpicked successor. Iger, in Kimmel’s estimation, did not return to his old job for a larger pension, but rather to execute a “big plan.”
“He understands that sports is one of the biggest growth asset classes in the world,” Kimmel told Sports Handle. “Sports is an integral part of entertainment today. He has unbelievable relationships in the sports world. He just knows how this all works.”
Bob Iger revealed ESPN is more important for Disney's bottom line than its entire entertainment business https://t.co/Pcv8CJEXB5 pic.twitter.com/ACEMaUjZ
— Juank (@JCSura) October 20, 2023
Beginning with Disney’s fourth quarter of 2023, the company will report the financial results of its media and entertainment businesses in separate segments in an effort to provide greater transparency about the company’s linear networks and sports businesses. For the first nine months of 2023, ESPN reported domestic operating income of $1.89 billion on revenue of $12.5 billion, according to an SEC Form 8-K filing made public on Wednesday.
While ESPN’s profits declined on a year-over-year basis, the figures suggest that the network is contributing more to Disney’s bottom line than the remainder of the company’s entertainment division, Fortune reported. Bloomberg Intelligence analyst Geetha Ranganathan values ESPN as a standalone asset at $22 billion.
Over the next 10 years, Kimmel would not be surprised if the NBA add expansion teams outside the U.S. Mike Morrison, ESPN’s vice president of sports betting and fantasy, spent a decade as the company’s head of its Asian Pacific division, where he oversaw ESPN’s businesses in Australia, Japan, and India, among other nations.
Kimmel believes that ESPN can leverage Morrison’s international experience, emphasizing that the longtime executive distinctly knows the “global game.” But for now, ESPN BET is focused on making inroads in the U.S.
The stakes are high for ESPN's long-awaited foray into sports betting. Vice president of sports betting Mike Morrison remains confident the broadcasting behemoth is poised to upend the established order. https://t.co/1e9JZwJgv0
— iGB (@iGamingBusiness) August 22, 2023
Offering carrots cy1z
Last week, several top Wall Street gambling analysts traveled to Las Vegas to hear Morrison’s G2E presentation on ESPN BET, in which he discussed how it plans to utilize ESPN’s brand, media network, and player database in conjunction with PENN’s tech stack to create a differentiated experience for bettors.
As with Ontario, PENN offers a similar function with theScore’s app and theScore Bet.
“We think successful execution could drive meaningful upside to the shares, though it is too early to tell,” Truist Securities analyst Barry Jonas wrote in a research note.
ESPN also has the ability to leverage its universally recognized brand to offer various incentives to bettors. On the digital side, the Worldwide Leader can entice bettors with discounts for ESPN+, several analysts suggest. The streaming service offers thousands of live broadcasts in a multitude of sports.
ESPN employs a lengthy roster of former pro athletes, and Kimmel envisions its sportsbook offering carrots such as the opportunity for select bettors to watch the College Football Playoff national title on the sidelines with someone like Pat McAfee. There is also potential for the company to bring back a series of ESPN Zone sports-themed restaurants, he suggests, in retail sports betting areas formerly occupied by Barstool Sportsbook.
When unveiling the ESPN BET platform in August, PENN Entertainment CEO Jay Snowden said he is hopeful it can reach 20%+ national market share by 2027. Ahead of the launch, JMP Securities analyst Jordan Bender sees near-term upside for PENN, with market share initially spiking to double digits. Other analysts are more skeptical, with one telling Sports Handle that he doesn’t believe ESPN BET will hit the 20% threshold.
ESPN unveiled the official logos for ESPN BET on Wednesday, an announcement that comes as the new betting app gears up for a November launch, writes @BennettConlin (click pic for full story).https://t.co/SR3lBfjON4
— Sports Handle (@sports_handle) October 18, 2023
Kimmel expects ESPN BET to get there. Earlier this week, next month’s expected launch. The company can also tap into an expansive database of fantasy sports s and leverage its unique relationships with teams and leagues to grow its sports betting platform, Kimmel notes.
“ESPN has an amazing opportunity to do something incredibly special,” he said. “They can do a great job of integrating, which I believe they will with sports betting into their overall programming.”
SportsHandle’s ESPN BET promo code will be available or use starting on November 14th.
