PENN Secures New York Sports Betting Licenses in Deal with Wynn Interactive

Penn Entertainment has set its sights on the lucrative New York market with a recent strategic move. The company announced a significant agreement with Wynn Interactive Holdings, marking a pivotal step towards acquiring mobile sports wagering licenses for New York market access.

PENN’s $25 Million Deal Secures Key Licenses for ESPN BET Launch in New York

The deal, valued at $25 million, entails PENN obtaining WSI US, LLC from Wynn Interactive Holdings. This subsidiary holds the coveted mobile sports wagering licenses previously granted by the New York State Gaming Commission in 2021. Pending regulatory approvals, this arrangement positions PENN to debut its online sports betting platform, ESPN BET, in New York by the end of 2024.

Jay Snowden, CEO and president of PENN Entertainment, emphasized the importance of this development, highlighting the significance of entering the largest regulated online sports wagering market in North America. 

Snowden expressed confidence in the potential of ESPN BET, especially in collaboration with the renowned sports media giant ESPN. He emphasized the brand’s commitment to establishing a strong presence in the sports betting landscape across the United States.

This move comes at a time when Wynn Interactive Holdings has been scaling back its ambitions in the online sports betting arena. With PENN’s acquisition of Wynn’s New York licenses, it marks a strategic shift in focus for both entities. While Wynn Interactive reevaluates its national sports betting strategy, PENN doubles down on its commitment to expanding ESPN BET’s footprint.

ESPN BET’s Impressive Debut Week Signals Strong Potential in New York Market

New York, known for its robust sports betting market, presents a significant opportunity for ESPN BET to thrive. The state has seen substantial growth in online sports wagering activity, with billions of dollars in wagers recorded since the launch of online betting platforms. 

Despite facing regulatory challenges and stiff competition, PENN Entertainment remains optimistic about the prospects of ESPN BET in the dynamic New York market.

ESPN Bet, launched by Penn Entertainment following a $1.5 billion deal with ESPN, expanded its reach to 17 US states in November, leveraging ESPN’s brand and audience to offer a comprehensive sports betting experience. 

Disney’s entry into sports gambling, through ESPN Bet, reflects a strategic move to capitalize on the growing online betting market and enhance profitability across its entertainment portfolio.

ESPN Bet experienced an impressive debut week with over 1.1 million downloads, capturing a significant portion of the market share in the sports betting sector. The strong performance reflected the app’s rapid penetration into major US markets and underscored its potential to challenge industry leaders like DraftKings and FanDuel.