Penn could soon bring ESPN Bet to Nevada. The entertainment company has reportedly stated that it is paying Wynn Resorts $25 million to acquire its mobile sports betting licenses. While those pertain to New York, a region that continues to lead the segment, chances are that Penn Entertainment will soon take it to the floors of Nevada’s Strip.
A tentative timeline has now been made public. Expectations are for the development to happen by the end of this year. Needless to say, it is subject to Nevada regulatory approval.
ESPN Bet was unveiled by Penn Entertainment last year. It was via a 10-year agreement worth approximately $1.5 billion with the sports and entertainment company. ESPN Bet went on to replace its Barstool Sportsbook. It now operates in 17 states, with the possibility of adding an 18th state soon.
Jay Snowden, the Chief Executive Officer of Penn Entertainment, has downplayed the development, citing that ESPN Bet has been sidelined for now due to Nevada’s in-person registration requirement for mobile sports betting. Calling the law related to that nuanced, Jay said that it is a challenging issue for them since they only have one property in Las Vegas.
That said, there are still chances that ESPN Bet could make its way into the future.
Penn could be considering striking a deal with Wynn so that its sportsbook can be rebranded as ESPN Bet, giving them a physical location for the registration. Snowden is expected to take questions in this regard on Thursday, the day when they are hosting a conference call with an analyst for the fourth quarter and year-end.
Nevada and New York continue to lock horns, emerging as the more preferred regions for sports betting. New York is a strong contender, for it generated $1.7 billion worth of revenue last year. Nevada, on the other hand, booked revenue of $481.3 million in sports betting. Nevada is, comparatively, an open space for growing sports betting. New York is more competitive considering it houses some of the big brands on its soil.
Jordan Bender, a gaming analyst with JMP Securities, wrote in a research note that New York has been highly competitive in the segment since the first day it was legalized. One of the reasons why New York’s market has proven to be lopsided, per their research note, is that operators tend to take a conservative approach when it comes to spending funds on marketing and promotions.
A correction could indeed be the end of the year; with the Super Bowl done less than a week ago, it would make more sense to preserve resources at the moment and go big later during the holiday season. This is speculation based on a general assumption. An official statement by Jay or an appointed representative will shed more light on this on Thursday.
