ESPN BET Enters New York Sports Betting Market After Receiving Permit
Date: 2024-09-24 Author: Leon Pierce Categories: SPORTS BETTING
ESPN BET, a sportsbook owned by Penn Entertainment, has received permission from the New York State Gaming Commission (NYSGC) to accept wagers. This was made possible by the acquisition of a license from WynnBET for $25 million. Now, ESPN BET is ready to enter the largest legal sports betting market in the United States.
ESPN BET Ready to Launch in the Coming Days
At a commission meeting on Monday, Chris Rogers, Penn’s chief strategist and attorney, said that ESPN BET’s platform is almost ready to go. The launch only requires some technical issues to be ironed out. According to him, a soft launch is planned in the coming days so that the bookmaker can begin accepting bets before the football weekend. The launch was delayed, causing ESPN BET to miss the start of both the college football season and the National Football League (NFL).
The acquisition of the WynnBET license is a key part of Penn’s strategy to successfully enter the New York market. WynnBET has struggled in the state and has already exited several other markets. However, Penn Entertainment hopes that the strong ESPN BET brand will allow it to compete with other operators.
Rogers is bullish on ESPN BET’s prospects, citing its success in other states. He says the platform has attracted new players and increased betting volumes, rather than simply poaching customers from other sportsbooks.
Competition in the New York Market
Despite the late start, New York remains an attractive market for ESPN BET. Since sports betting was legalized in 2022, sportsbooks in the state have processed $50 billion in bets, generating more than $4.3 billion in revenue. However, it will have to compete with major players like DraftKings and FanDuel, which have already established a strong presence in the state.
Adding to the difficulty is New York’s steep 51% tax on sportsbook operators, the highest among states with multiple licensed companies. This makes it difficult to offer generous promotions and bonuses. Despite this, Penn Entertainment CEO Jay Snowden believes that ESPN BET can find long-term success in this market.
The NYSGC meeting also raised the issue of advertising targeting students and minors, as ESPN often airs college sports. Rogers assured the commission that the company will comply with all state regulations, avoiding promotions on campuses and preventing underage betting.
Now that ESPN BET has received official approval, it will become the ninth mobile sportsbook in New York State, which will likely lead to increased competition and new players.
