ESPN BET, the sportsbook brand owned by Penn Entertainment, can now take sports bets in New York. The New York State Gaming Commission (NYSGC) gave them the thumbs up. This happened after Penn bought WynnBET’s license in New York for $25 million. Now ESPN BET can join the biggest legal sports betting market in the US.
ESPN BET Eyes New York Soft Launch in Days
At Monday’s commission meeting, Penn’s chief strategy and legal officer Chris Rogers revealed that ESPN BET is ready to launch. The platform just needs to iron out a few technical problems. He suggested it might go live in a matter of days with a soft launch before the weekend’s football games. This update comes after an initial delay that caused the sportsbook to miss the kickoff of both the college and NFL football seasons.
Penn Entertainment’s purchase of the license from WynnBET is a key part of its plan to enter the New York sports betting scene with a bang. WynnBET struggled to gain traction in New York and has already left several states. Penn however, believes ESPN BET’s strong brand will give it an edge over competitors.
Rogers feels upbeat about the brand’s launch growing the market drawing from good results in other states, reported Covers. He hinted that ESPN BET has brought in new bettors and boosted overall betting amounts elsewhere instead of just taking customers from other betting companies.
ESPN BET Prepares to Take On New York’s Betting Giants
Even though it is late to the game, New York still offers a profitable market for ESPN BET. Since 2022 when betting became legal, the state’s sportsbooks have taken in $50 billion in bets earning over $4.3 billion in total revenue. But ESPN BET will have to compete with big names like DraftKings and FanDuel, which rule the New York market.
Another hurdle is New York‘s hefty 51% tax on sportsbook operators, the highest among states with multiple betting companies. This tax makes it hard to offer big promotions. Penn CEO Jay Snowden admits this creates money problems but believes ESPN BET will do well in New York in the long run.
At the NYSGC meeting, people spoke up about ads aimed at college students and kids since ESPN shows many college sports. Rogers promised the commission that Penn and ESPN would follow state rules, such as not promoting on college campuses and stopping underage betting.
Now that it has got the final go-ahead, ESPN BET looks set to be New York’s ninth mobile sportsbook up and running. This could bring new rivalry and maybe draw in a fresh bunch of bettors.
Source : GamblingNews