Posted on: December 20, 2023, 11:53h.
Last updated on: December 20, 2023, 11:53h.
Penn Entertainment’s (NASDAQ: PENN) ESPN Bet mobile sports betting app may be drawing more casual and female bettors to the market, resulting in its strong start since launch.
Bank of America analyst Shaun Kelley stated in a recent report that ESPN Bet’s app debuted in 17 states and achieved over one million downloads in its first week, which emphasizes the positive impact of the ESPN brand in opening up the sports betting world to new bettors.
“It’s our sense ESPN Bet could be growing the market through more casual and female bettors compared to other sportsbooks,” Kelley noted.
In several states where ESPN Bet operates, the app has exceeded market share expectations, at the expense of other leading sportsbooks such as BetMGM, Caesars Sportsbook, and DraftKings (NASDAQ: DKNG).
ESPN May Have Won Over Competing Rivals
Kelley mentioned that ESPN Bet’s increased market share affected competitors while FanDuel, the largest online sportsbook operator, also gained market share due to NBA seasonality and increased marketing.
Despite the competition, DraftKings’ customer churn and client spending habits were normal in the states it competes with ESPN Bet.
Bank of America’s Kelley added that the research firm has “high conviction in DraftKings’s growth story, despite increased competition.”
Focus on ESPN Bet Promotional Spending
Some believe ESPN Bet’s early success is attributed to generous promotions by the app, but Kelley argues that promotional spending remains in line with the industry. Despite a predicted initial loss, it could be 2025 before ESPN Bet becomes profitable.