Jonas explained that ESPN Bet could initially face projected losses of US$100 million to US$150 million and it could be 2025 before making profits. However, this is merely speculation, and the state is taking its time with the process of awarding the three licenses.Īdditionally, Mr. There is hope for Penn, as earlier this year, WynnBET reduced its operations, which could mean that Wynn Resort could be willing to sell its online sports betting permit if it does not land a commercial gaming license in the state. It could also pave the way for an iGaming license if legalized. But parent companies of all three companies are after a downstate casino license in New York, and if they succeed in their quest, then it would be highly likely that they will give up on their sports betting licenses in the state. This leaves WynnBET, Resort WorldBET, and Bally Bet, as potential targets for ESPN Bet. division, will also be a difficult seller as it aspires to succeed in the state. Fanatics which recently purchased PointsBet U.S.

However, the top five operators by handle and revenue in the state, FanDuel, DraftKings, Caesars Sportsbook, BetMGM, and BetRivers, will most likely refuse to sell. Still, a purchase could turn out to be difficult but not impossible. Another option for the company would be to wait for a current sportsbook to exit the market or buy one of the currently active licenses from one of those companies. Is it Possible?įor Penn Entertainment to legally launch its ESPN Bet in the Empire State, local lawmakers would have to pass an expansion of the number of allowed sportsbooks in the state. In addition to that, the state’s model imposes a hefty 51% tax rate on winnings, making it harder for online sportsbooks to make profits. However, its number of permitted operators is currently limited to just nine, which could be an issue for Penn. Launched in January 2022, New York’s mobile sports betting market is the largest legal sector across the US. This corresponds to previous comments from the company on joining the Empire State’s industry. This was recently reported by Truist gaming analyst Barry Jonas after the recent 11th Annual Truist Securities GLLR Summit in Boston.

Penn Entertainment is looking for avenues to incorporate its newly launched ESPN Bet mobile sports betting app in New York’s regulated market.

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