Integration with ESPN Site Fails to Have Impact
When Penn first partnered with ESPN, the hope was that integrating the sportsbook with the website and app would help market to millions of potential bettors. While many fans use ESPN to follow their teams, scores, and other events, it has not led to an influx of new customers for the online sportsbook.
The failure of ESPN Bet so far shows that bettors don’t feel the need to have their sports research and online sportsbook connected.
While the integration with ESPN Fantasy has a similar goal, we expect to see a bigger impact. Fantasy players spend hours on the app researching players and building rosters. They know a lot about the players on their team, and now ESPN Bet will give them a way to make some money off that knowledge easily.
The details of the integration are still unknown, but they should become public over the summer.
ESPN Bet Opt-Out Date Quickly Approaching
Penn’s new effort to boost ESPN Bet comes ahead of the third anniversary of the partnership with ESPN. The deal the two sides reached included an opt-out clause after three years.
ESPN and Penn hoped that a quick expansion and a coveted New York operating license would help boost the sportsbook, but that hasn't happened.
The clause was added due to the intense competition in the sports betting market, which FanDuel and DraftKings dominate. While no official decision has been made, Penn CEO Jay Snowden has confirmed they are considering enacting the clause and ending the partnership.
Penn Confirms Interest in Prediction Markets
Penn’s recent earnings call also touched on the rise of sports prediction markets. These controversial trading platforms allow customers to bet on sporting events from anywhere in the US. These markets do not qualify as gambling since they are technically trading contracts instead of betting against the house.
Snowden confirmed that the company is monitoring the fight over prediction markets while considering launching its own platform. While nothing is official, it shows Penn may be looking for a new path to success in sports betting.
