The beleaguered ESPN Bet will be integrating a fantasy sports component through its partner, ESPN, and it is being touted as a game changer for the success of Penn Entertainment’s sports betting site.
Integration: Key to Success
Integrating Penn Entertainment’s ESPN Bet with ESPN has been touted as a cornerstone of the sports betting app’s success in the marketplace. According to recent reports, the next step toward incorporating the two will come in the form of fantasy sports, where those who have season-long fantasy teams through ESPN will be able to move seamlessly between the sports media giant’s app and ESPN Bet.
The ability to build symmetry between the two sites is something Penn Entertainment’s CEO, Jay Snowden, has been touting since the deal was signed. Gaining all access to ESPN’s digital components has been a priority of Snowden’s, and he believes it will ultimately lead to attracting new users to ESPN Bet.
“Look, we’re finally getting to the point, after being live with ESPN Bet for a year and a half, where the real deep integrations that we all were excited about when we did the deal and shook hands, those are all starting to happen now,” Snowden said.
Opt-Out Clause Looming
At the three-year mark, either party can opt out of the 10-year, $2 billion agreement Penn signed with Disney’s ESPN. However, that poison pill available in September 2026 is not one that either side is eager to exercise, and building momentum, as well as market share, for ESPN Bet before that milestone is reached could prevent such a catastrophe.
“We’re focused, our partners are focused, we’re excited about what’s ahead of us,” Snowden said. “Let’s see where we are as we trend through the next couple of quarters. I think it’ll probably be not just obvious to us but obvious to others as well what path is going to make sense.
Penn Entertainment’s foray into the mobile sports betting arena has been an unmitigated failure. Penn controls only 2.8% of the national market via its presence in 20 jurisdictions and estimates it will reach 4.7% by the end of this year. However, that is a far cry from the 20% sports betting market share it projected in 2027 when the deal was made.
Its investors are restless after watching the stock tumble 84% from its high of $130/share in 2021. There is even a proxy battle looming for seats on Penn’s board of directors coming from one of its investors, HG Vora, which owns 4.8% of Penn stock.
Bookmakers Review will continue to monitor this story as events unfold.
