Penn’s ESPN Bet App Outperforms Barstool in Wagers and Market Share

Penn Entertainment Inc.’s ESPN Bet sports-betting app is seeing a surge in wagers, surpassing the performance of its former Barstool brand, according to industry analysts and state data.

Penn’s Success Is Unveiled in Maryland and Iowa Betting Spree

Maryland reported a significant spike in mobile wagers on ESPN Bet, reaching $42.4 million in December compared to $16.4 million under the Barstool banner a year ago, reported Bloomberg. This propelled Penn into the third position, trailing only industry giants FanDuel and DraftKings, while outperforming competitors BetMGM and Caesars Entertainment.

Similarly, in Iowa, Penn experienced a notable increase in mobile sports wagers, totaling $18.8 million in December. This figure more than doubled the $7.2 million recorded during the same period the previous year, according to state-released data.

Brian Egger, a senior analyst with Bloomberg Intelligence, mentioned in an email that preliminary data indicates the book enhanced its predecessor’s modest market share and achieved this improvement during a crucial seasonal period.

While the ESPN Bet app is enjoying a strong start, Penn faces challenges such as high costs and stiff competition as it strives to solidify its position in the online gaming market.

The casino operator initially entered the sports-betting arena under the Barstool brand after acquiring the online video and podcast company from sports commentator David Portnoy. Following challenges associated with the controversial founder, Penn returned Barstool to Portnoy and inked a lucrative $2 billion deal last year to license Walt Disney Co.’s ESPN brand.

Penn’s Market Share Soars After ESPN Bet November Launch

The positive performance of ESPN Bet in December follows its robust launch on November 14. Penn’s share of sports-betting revenue in November across six states stood at approximately 12%, a substantial increase from the meager 2% it held when operating under the Barstool name, as reported by Macquarie Group analyst Chad Beynon.

In a research note dated January 3, Beynon remarked that despite it being early, the reports regarding ESPN Bet were positive. He believes the brand’s broader appeal, including reaching a more diverse customer base, particularly women, will likely contribute to increased betting revenue.

ESPN has played a crucial role in promoting the app across its various platforms, leveraging its TV shows and website to showcase betting odds associated with the site rather than other brands.

Despite the initial success, the online gaming industry remains challenging, with even major players like FanDuel and DraftKings struggling to achieve profitability. To address market dynamics, ESPN Bet has adjusted its strategy by reducing bonus offers for new players from $250 to $150. 

Jefferies International analyst James Wheatcroft highlighted in a report on January 7 that new app sign-ups, which initially led the industry, are beginning to plateau.