Posted on: January 12, 2024, 05:14h.

Last updated on: January 12, 2024, 05:14h.

Penn Entertainment’s (NASDAQ: PENN) ESPN Bet mobile sports betting app has shown early success, outperforming its predecessor, Barstool Sportsbook, as indicated by state-level data.

Debuted in 17 states on November 14, ESPN Bet has shown strong results in terms of revenue generation, with double-digit shares of gross gaming revenue (GGR) in Indiana, Iowa, and Maryland.

In Maryland, ESPN Bet’s handle was $42.4 million in December, more than double Barstool Sportsbook’s $16.4 million in the same month a year earlier.

Despite promotional spending, ESPN Bet is expected to generate substantial long-term earnings for Penn Entertainment. It is estimated to add $500 million to $1 billion in long-term, adjusted earnings before interest taxes, depreciation, and amortization (EBITDA) to its interactive gaming unit.

The launch of ESPN Bet has impacted the US sports betting market, leading to increased promotional spending and overall positive changes in the industry.

Industry-wide promotional reinvestment accelerated in November, largely due to the mid-month launch of ESPN Bet.

Following the debut of ESPN Bet, market dynamics have shifted with potential market share shifts from competitors like BetMGM and DraftKings. However, DraftKings noted its customer churn was normal and believes ESPN Bet has the potential to grow the market of US sports bettors.