Published on: December 12, 2024, at 07:33h.
Last updated on: December 12, 2024, at 07:33h.
Penn Entertainment’s (NASDAQ: PENN) ESPN Bet mobile sportsbook was launched over a year ago and is showing signs of benefiting from its association with the sports broadcast network.
A recent survey by YouGov indicates that ESPN Bet is the fifth-largest sportsbook operator in the US, behind competitors like DraftKings, FanDuel, BetMGM, and Caesars Sportsbook. However, ESPN Bet is leveraging its relationship with ESPN to attract potential customers who have a positive view of the network.
“Among Americans with a strongly negative rating for ESPN, almost 0% consider ESPN BET. In contrast, 5% of this group would consider DraftKings and FanDuel,” according to YouGov. Fortunately, Americans with a strongly positive view of ESPN outnumber those with a negative view (23% vs. 10%).
The survey comes at a time when FanDuel and DraftKings dominate the online sports betting market share in the US, but Penn’s ESPN Bet is making progress.
Penn’s Investment in ESPN
Investors in Penn Entertainment are encouraged by ESPN Bet’s success, but they expect continuous growth since the company paid a significant sum to use the ESPN branding.
When Penn struck a deal with ESPN in August 2023, it agreed to pay ESPN $1.5 billion over 10 years for branding rights and granted the network $500 million in equity warrants. Some investors criticized the deal, claiming it was overpriced.
Data shows that ESPN Bet attracts a younger audience and more female bettors compared to its competitors like DraftKings and FanDuel. YouGov notes that 43% of ESPN Bet clients are between 21 and 29 years old, higher than DraftKings and FanDuel.
“ESPN BET also has a slightly higher share of women users, although the gap is smaller than the age breakdown. Almost one-third of ESPN BET users are women, compared to 27% of DraftKings and 28% of FanDuel users,” according to YouGov.
Unique Market Niches for ESPN Bet
In the US, football and basketball are the most popular sports for betting, but ESPN Bet is carving out its niche by focusing on basketball, soccer, and eSports.
According to YouGov, half of ESPN Bet customers bet on basketball the most, followed by soccer at 49%, and eSports at 41%, showing a different trend from DraftKings and FanDuel.
“ESPN BET’s unique positioning appeals to non-traditional and emerging sports preferences while also remaining relevant in mainstream sports betting markets,” concludes YouGov.