Penn’s ESPN Bet App Surpasses Barstool in Betting Surge

Penn Entertainment Inc. has reason to celebrate as its ESPN Bet sports-betting app gains traction, surpassing the performance of its former Barstool brand. In Maryland, mobile wagers on ESPN Bet reached an impressive $42.4 million in December, dwarfing the $16.4 million reported under the Barstool banner a year ago. This surge has catapulted Penn into the third position in the industry, trailing only behind FanDuel and DraftKings, while leaving competitors BetMGM and Caesars Entertainment in the dust.

Similarly, in Iowa, Penn experienced a remarkable increase in mobile sports wagers, totaling $18.8 million in December. This number more than doubled the $7.2 million recorded during the same period the previous year, according to state-released data. Brian Egger, a senior analyst with Bloomberg Intelligence, suggests that preliminary data shows ESPN Bet has substantially improved its market share during a crucial seasonal period.

The impressive performance of ESPN Bet in December comes on the heels of its successful launch on November 14. In November, Penn’s share of sports-betting revenue across six states stood at approximately 12%, a remarkable increase from the mere 2% it held when operating under the Barstool name. According to Macquarie Group analyst Chad Beynon, this is a significant achievement.

In a recent research note, Beynon remarked that the early reports regarding ESPN Bet have been positive. He believes the brand's broader appeal, including reaching a more diverse customer base, especially women, will likely contribute to increased betting revenue. ESPN has played a pivotal role in promoting the app across its various platforms, using its TV shows and website to highlight betting odds associated with the site.

Despite its initial success, the online gaming industry remains challenging, with even major players like FanDuel and DraftKings struggling to achieve profitability. To adapt to market dynamics, ESPN Bet has adjusted its strategy by reducing bonus offers for new players from $250 to $150. Jefferies International analyst James Wheatcroft pointed out in a report on January 7 that new app sign-ups, which initially led the industry, are beginning to plateau.

As Penn Entertainment's ESPN Bet continues its ascent in the online gaming world, it must navigate the competitive landscape and address the challenges that lie ahead in its quest for dominance.