BetMGM
ESPN Bet App Takes in More Money Since Dropping Barstool Brand
Penn Entertainment Inc. is taking in more wagers from its new ESPN Bet sports-betting app than it did under the jettisoned Barstool brand, according to analysts and data from several states.
In Maryland, mobile wagers on ESPN Bet jumped to $42.4 million in December from $16.4 million under the Barstool name a year ago, according to state results reported last week. That placed Penn third behind industry leaders FanDuel and DraftKings Inc., and ahead of rivals BetMGM and Caesars Entertainment Inc.
In Iowa, Penn generated mobile sports wagers of $18.8 million in December, more than double the $7.2 million in the year-ago period, according to data released by the state last week.
“Preliminary data suggest the book improved on its predecessor’s small market share — and did so during a key seasonal period,” Brian Egger, a senior analyst with Bloomberg Intelligence, said.
While the ESPN Bet app is off to a fast start, Penn is confronting high costs and entrenched rivals in its quest for a bigger foothold in online gaming.
The casino operator based in Wyomissing, Pennsylvania, originally launched its sports-betting business under the Barstool name, after acquiring the online video and podcast company from sports commentator David Portnoy. After challenges associated with the controversial founder, Penn gave Barstool back to Portnoy and signed a $2 billion deal last year to license Walt Disney Co.’s ESPN brand.
The December numbers follow the strong launch for ESPN Bet on Nov. 14. Penn’s share of sports-betting revenue in November in six states was about 12%, according to Macquarie Group analyst Chad Beynon. That’s up from about 2% for Penn when it used the Barstool name.
“Though still early,” the reports for ESPN Bet are “positive,” Beynon wrote in a Jan. 3 research note. The brand will likely increase betting revenue because it appeals to a wider range of potential customers, including women, he said.
ESPN has been promoting the app on its TV shows, website and other outlets, using the site’s betting odds in stories, for example, rather than other brands.