Penn Ent’tnment Launches ESPN Bet App
Penn Entertainment has successfully rolled out ESPN Bet, its new online sportsbook, across 17 states in the United States. Through the ESPN Bet app and website, players from states like Arizona, New Jersey, Pennsylvania, Massachusetts, Illinois, and Ohio can now actively participate in sports wagering. This launch marks a milestone following Penn’s $1.5 billion partnership with Disney-owned ESPN.
Penn Entertainment has finally rolled out ESPN Bet, its new online sportsbook, across 17 states in the United States, including the likes of Arizona, New Jersey, Pennsylvania, Massachusetts, Illinois, and Ohio.
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ESPN Bet Launch Follows Penn’s Massive $1.5 Billion Deal with ESPN
Penn Entertainment, a significant player in the realm of online sports betting, has officially rolled out ESPN Bet, its newest online sportsbook, across a total of 17 states within the United States. Accessible via the ESPN Bet app and website, this platform now enables sports enthusiasts in states like Arizona, New Jersey, Pennsylvania, Massachusetts, Illinois, and Ohio to partake in sports wagering activities.
This launch comes as a pivotal step following Penn’s massive $1.5 billion partnership with ESPN, a media entity owned by Disney. The collaboration aims to fortify Penn’s foothold within the swiftly expanding online sports betting market. As part of this agreement, Penn assumes operational duties for ESPN Bet, leveraging its expertise in the betting landscape, while ESPN utilizes its widespread online and broadcast platforms to endorse the app among its audience.
ESPN Bet essentially emerges as a rebranded version of the pre-existing Barstool Sportsbook app, an alteration that transpired subsequent to Penn’s decision to sell Barstool Sports back to its founder, Dave Portnoy, back in August. In this newfound collaboration, Penn has secured the rights to utilize the ESPN Bet brand for an initial tenure of ten years, with an opportunity for an additional decade. Complementing the $1.5 billion licensing deal, Penn has also extended ESPN share purchase rights valued at around $500 million, showcasing the depth and scope of this strategic partnership.
App’s Launch Will Likely Add Up to $1 Billion to Penn’s Long-Term Adjusted EBITDA
In a notable shift within the gambling landscape, ESPN Bet’s recent launch is projected to significantly augment Penn’s long-term adjusted EBITDA potential by approximately $1.0 billion, as indicated in the company’s Q3 update. This newly launched sportsbook is set to make its debut in several states, including Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, New Jersey, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia. However, approval from gaming commissions in some states is still pending.
ESPN Bet’s introduction into these markets represents a strategic move by ESPN, a well-established sports media entity that garners over 105 million monthly unique digital visitors. This venture propels ESPN into the profitable realm of online sports gambling, marking a significant departure for Disney, ESPN’s parent company known for maintaining a family-friendly image. Disney’s venture into the sports betting sector signifies a deliberate endeavor to diversify its revenue streams.
Addressing concerns about responsible gambling practices, Penn and ESPN have taken proactive steps by implementing stringent guidelines for their employees and developing comprehensive content standards for responsibly marketing ESPN Bet. These guidelines prohibit Penn employees from engaging in betting activities through the platform. Similarly, ESPN employees are required to adhere to guidelines aimed at preserving journalistic integrity and independence.
Marketing strategies for ESPN Bet are set to comply with stringent content regulations across various social media platforms, ensuring responsible marketing practices. These efforts include attributing odds and integrating editorial content while prioritizing responsible engagement. Furthermore, initiatives will focus on refraining from marketing to individuals who have self-excluded or are excluded for other valid reasons, aligning with the companies’ commitment to responsible gambling practices.
Golden Entertainment Completed Sale to J&J Ventures Gaming in September 2023
Golden Entertainment, a prominent figure in the gaming and hospitality sector, has concluded the sale of its distributed gaming operations in Montana, marking a pivotal step in its ongoing strategic agenda aimed at optimizing its business portfolio.
J&J Ventures Gaming has officially acquired Golden Entertainment’s Montana Distributed Gaming Operations as per the stipulations of the purchase agreement. The transaction has been sealed for an approximate cash consideration of $109 million. Legal advisory services for Golden Entertainment in this transaction were provided by Latham & Watkins LLP.
However, the transaction amount remains subject to customary working capital adjustments, incorporating additional cash, inclusive of cash and cash equivalents linked to the operations at the time of closing, amounting to approximately $5 million. Golden Entertainment has highlighted that the pending sale of its Nevada slot machine business is contingent upon meeting customary closing conditions, which notably include securing gaming regulatory approvals.
Notably, Golden Entertainment commands a significant presence, overseeing approximately 10,500 slot machines dispersed across over 1,000 non-casino locations in Nevada and Montana. The company had previously entered into definitive agreements back in March, outlining the divestiture of its slot machine business in these two states to J&J Ventures Gaming. The transaction was valued at a cash consideration of $322.5 million, alongside an estimated $39 million in purchased cash at closing. This strategic business move signifies Golden Entertainment’s unwavering commitment to streamlining its operations and fortifying its market position within the gaming industry.
Penn Concluded Migration of Barstool Sportsbook to its Platform in August 2023
Penn Entertainment has marked a significant achievement in its technological advancement by completing the seamless migration of Barstool Sportsbook and Casino to its self-owned in-house platform. This milestone, executed across 16 states during Major League Baseball’s All-Star Break, stands as an unprecedented and extensive technology migration in the history of North American gaming.
The successful completion of this massive migration signifies Penn Entertainment’s realization of a long-standing strategic goal: achieving technological independence by centralizing all gaming operations in-house. The company’s prior acquisition of theScore, which was in the process of developing the platform upon acquisition, and the establishment of Penn Games Studios were instrumental elements of this comprehensive plan. Following this migration triumph, theScore, now operating under Penn’s brand in Ontario, led the transition to the new tech stack.
The revamped version of Barstool Sportsbook and Casino introduces various innovative elements, such as refined navigation, advanced personalization features, and expedited transaction processes for deposits and withdrawals. This technological overhaul underscores Penn Entertainment’s unwavering commitment to enhancing the betting experience for its users. Moreover, it portrays the company’s dedication to ongoing technological innovation within the fiercely competitive gambling market.
With all its brands now leveraging proprietary technology, Penn Entertainment is well-positioned to elevate its offerings and solidify its standing as a frontrunner in the dynamic and ever-evolving gaming industry. This monumental migration signifies not only a technological leap forward but also a strategic advantage for Penn Entertainment as it navigates the landscape of the gaming market.
