It may have come a month later than PENN Entertainment hoped for, but the New York State Gaming Commission (NYSGC) unanimously cleared the way for PENN’s U.S. sportsbook brand, ESPN BET, to begin accepting mobile sports wagers in the Empire State on Monday— possibly in advance of this weekend’s slate of college and pro football games.
When asked during Monday’s commission meeting how long it would take for the platform to go live in New York, a massive market which recently crossed the $50 billion threshold in all-time sports betting handle, PENN executive Chris Rogers replied that ESPN BET would be prepared to launch “in a matter of days — perhaps even a soft launch ahead of this weekend.”
Approval was then granted for PENN/ESPN BET to assume the state license it previously agreed to purchase from WynnBET for $25 million.
PENN previously said it hoped ESPN BET would be live in New York by the start of football season, but the license was not granted in time for that to happen.
In a statement issued to Action Network, a PENN spokesperson said of Monday’s decision: “We’re grateful to the New York State Gaming Commission for its approval and we’re in the process of readying our product for launch in New York in the coming days.”
Concern Over College Marketing
While NYSGC Executive Director Robert Williams reported that his staff identified “no disqualifying elements” in PENN’s license application and recommended that the transaction be approved, Chair Brian O’Dwyer and Commissioner Martin Mack each asked Rogers for ESPN BET’s stance on marketing on college campuses and to underage males in particular.
Rogers replied, “We as a company are committed to avoiding the promotion of sports betting on college campuses.”
Rogers said ESPN BET would not target college students with its advertising and promotions, but he conceded that betting is occasionally a topic discussed during the “editorial” portion of college sports telecasts on ESPN as a way to increase viewer engagement.
Monday’s approval represents a welcome bit of good news for a brand that’s been closely scrutinized since PENN paid handsomely to have it replace Barstool as its U.S. sportsbook in August 2023.
Since ESPN BET launched last November, it, like virtually every other entrant in the space, has struggled to wrest market share from industry leaders FanDuel and DraftKings, enduring a couple rounds of layoffs and some investor dissent concerning PENN’s spending levels in the process.
To this end, industry analyst Jordan Bender said last month that he believed PENN would “not spend out of its means to acquire customers” going forward, “including a more conservative approach to the New York market.”
