On November 14, 2023, ESPN Bet first opened to the public. ESPN Bet owned by Penn Entertainment, was in the market to relaunch a sports betting app Today, Penn Entertainment is expected to have a call to discuss their first full quarter in the market with ESPN Bet. That call is likely to happen around 9:00 a.m. EST. The best offshore sportsbooks are also closely monitoring ESPN Bet’s progress to adjust their own market strategies.
So far, ESPN Bet is still young in the sports gambling market and they know they’re far from reaching their true potential. According to Legal Sports Report, executives from the company are expected to include a competitive parlay offering and integration with the main ESPN app. Penn Entertainment CEO Jay Snowden and ESPN Chairman Jimmy Pitaro are “very pleased” with their returns from their first full quarter. Ultimately, their stock price will determine how well they’ve grown in the market. On Tuesday, their stock price closed at $17.43. That is down roughly 36% since Penn announced details for a partnership with ESPN in early August.
How much did ESPN Bet lose in their first quarter and what does their profit look like now?
When a sportsbook first launches, promotions will always attract new customers to sign up. That’s the name of the game. ESPN Bet was no different when they first launched their app and were available to the public. In their first 45 days as a legal sports betting app, Penn posted a negative adjusted EBITDA of $333.8 million. That was in quarter four. Significantly higher than the $100 to $150 million Penn lost in quarter three. According to Jay Snowden, their first-quarter loss will be around $165 million in adjusted EBITDA. He noted that will be their biggest adjusted EBITDA loss of the year.
Out of the top five online sports gambling apps in the US, ESPN Bet has the fourth-largest betting cash handle at (8%). FanDuel owns (40%), DraftKings owns (31%), BetMGM owns (8%), and Caesars owns (5%).
What does the new Chief Technology Officer of ESPN Bet bring to the company?
Benjie Levy was formerly the head of the interactive segment at ESPN Bet. Mr. Levy was replaced with Adam LaBerge to be their new Chief Technology Officer. This should be a seamless transition for LaBerge as he is already familiar with ESPN Bet. LaBerge previously held the same role at the Walt Disney Company and will be joining Penn on July 1.
Penn CEO Jay Snowden mentioned cross-selling in the sports gambling market. He mentioned how that can be tough to do without a standalone app. Hollywood Casino is available within the ESPN Bet app but it would be easier for customers to use if it was a standalone app. Snowden said the Hollywood Casino app should be available in the next 12 months.
