A leading casino and sports betting company acquired a mobile sports license for New York, giving it access to one of the key markets.
What Happened: On Tuesday, PENN Entertainment PENN purchased a New York mobile sports wagering license from Wynn Interactive, a unit of Wynn Resorts WYNN for $25 million.
The move comes after the launch of ESPN Bet from Penn in 2023.
ESPN Bet will launch in New York in 2024 from Penn Entertainment.
"This is an important development that will bring ESPN Bet to the largest regulated online sports wagering market in North America," Penn Entertainment CEO Jay Snowden said.
Penn Entertainment announced a licensing agreement with The Walt Disney Company DIS in 2023 to license the well-known ESPN sports brand as ESPN Bet in a rebranding of Penn's former Barstool Sportsbook.
"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 U.S."
Related Link: Penn Entertainment Q3 Earnings Highlights: Revenue Beat, ESPN Bet Set For Multi-State Launch
Why It's Important: ESPN Bet launched in 17 states in November. The company is looking to compete with market leaders like DraftKings DKNG, Flutter Entertainment FLUT, which owns FanDuel, and BetMGM, a joint venture from MGM Resorts International MGM and Entain.
The New York sports betting market broke records in 2023 and is carrying continued momentum into 2024.
The sports betting market totaled $1.96 billion in New York according to data from PlayUSA. Sports betting operators in the state had revenue of $211.5 million in January, setting a new state record.
These were the market leaders in New York for January:
- FanDuel: $867.06 million in bets, $109.2 million in revenue
- DraftKings: $664.8 million in bets, $71.0 million in revenue
- Caesars Entertainment CZR: $198.0 million in bets, $13.7 million in revenue
- BetMGM: $118.9 million in bets, $10.0 million in revenue
PENN Price Action: Penn shares are down 2% to $22.87 on Tuesday versus a 52-week trading range of $18.35 to $32.86.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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