- PENN Entertainment will launch the ESPN BET brand in New York state later this year.
- The brand acquired the former WynnBET assets in the state.
- New York sportsbooks have enjoyed strong revenues but have found it nearly impossible to make money due to the state’s absurd taxation rate.
PENN Entertainment is set to introduce its ESPN BET brand to New York’s betting scene later this year, following a $25 million deal to acquire Wynn Interactive’s mobile wagering license in the state.
This strategic acquisition from Wynn Interactive Holdings grants PENN access to New York’s betting market, enhancing its footprint in the competitive landscape.
The deal involves PENN purchasing WSI US, a subsidiary of Wynn Resorts, for $25 million. WSI US is the holder of the mobile sports wagering licenses initially granted by the New York State Gaming Commission in 2021.
Jay Snowden, CEO and President of PENN Entertainment, highlighted the significance of this move:
“This is an important development that will bring ESPN BET to the largest regulated online sports wagering market in North America. Together with ESPN, we’re building a brand that is synonymous with sports betting, and operating in the New York market is key as we grow ESPN BET across the US.”
Subject to receiving the green light from regulatory bodies, PENN plans to roll out the ESPN BET online sportsbook in New York within the year.
January saw New York’s mobile sports betting sector expand by 9% to reach $1.96 billion, despite Wynn Interactive experiencing a 16% decline in wagers year-on-year, totaling $8.8 million. This is in contrast to the market leader, FanDuel, which posted $867.1 million in the same period.
Following this announcement, PENN Entertainment Inc’s (NASDAQ:PENN) shares dropped by 2.14% to $22.89 each in New York on Tuesday, while Wynn Resorts Ltd’s (NYSE:WYNN) shares saw a decrease of 1.09%, closing at $104.63.
