ESPN BET’s New York launch faces a delay because of regulatory obstacles leaving PENN Entertainment to wait for the New York State Gaming Commission (NYSGC) to give the green light.
PENN’s Deal for Wynn License Delays ESPN BET’s New York Debut
The sportsbook was set to go live in late August, but its entry into New York’s profitable online sports betting market is now on pause until it gets the necessary approvals. This holdup has a connection to PENN’s purchase of a Wynn Resorts-linked company that owns a sports betting license in New York. PENN cannot move forward with its plans without this approval.
The NYSGC stated that the board has not looked at PENN’s request to buy the Wynn company yet, reported Covers. They have set up a meeting on September 23, 2024, to discuss the deal. The board needs to say yes to this purchase before ESPN BET can start up in New York for real. This means ESPN BET will not be part of New York’s sports betting scene until late September at best. It might take even longer if any problems come up.
PENN Entertainment made a deal earlier this year to buy Wynn Interactive Holdings, which owns a New York online sports betting license. This agreement worth $1.5 billion over 10 years, gave PENN the sole right to use the ESPN BET brand. Buying the Wynn company is key to PENN’s plans to enter New York’s market, the biggest in the US for legal sports betting. Not entering this important market could cost ESPN BET millions in possible earnings.
PENN Frustrated by Delay as ESPN BET Aimed for New York Launch Ahead of NFL Season
The wait has displeased PENN Entertainment as the company wanted to get ESPN BET up and running before the NFL season kicked off, which is when sports betting is at its peak. Even though ESPN BET works in 18 other states, it has had a hard time getting a big chunk of the market compared to big names like DraftKings and FanDuel. Getting started in New York could give the brand a big push in terms of reaching more people and making more money.
PENN’s second-quarter investor presentation highlighted New York’s key role in growing its digital betting market share. The company stated that launching in the state would boost ESPN BET’s reach to a market covering 46% of the US population. At present though, PENN is waiting on the sidelines to get the green light from regulators before it can start its operations in the Empire State.
Source : GamblingNews