First impressions are everything. Unfortunately for ESPN Bet, its New York debut did not leave the lasting image it hoped for.
According to the New York State Gaming Commission, ESPN Bet ranked seventh of nine licensed online sports betting operators in total betting handle for the week ending on October 6.
The PENN Entertainment-controlled sportsbook generated $1.1 million in gross gaming revenue (GGR) from the $9.09 million in wagers accepted during the week, which was ESPN Bet’s first full one as a New York operator.
The first steps
ESPN Bet launched in New York on Sept. 27. It accepted $3.04 million in wagers during its first three days of operation, leading to $165,673 in GGR.
The recent batch of numbers shows that ESPN Bet increased its handle by roughly 235 percent compared to its first three days. Despite that, it only finished ahead of Resorts World and Bally Bet in the New York weekly sports betting total.
For comparison, DraftKings accepted $182.3 million in wagers, a near-60x increase on ESPN Bet’s total. Fanatics, Caesars, and BetMGM also significantly outperformed the new competitor, while BetRivers finished about $360,000 in front of ESPN Bet.
ESPN Bet’s $1.1 million in GGR also ranked sixth of all competitors, ahead of BetRivers, Bally Bet, and Resorts World.
The State Gaming Commission did not include FanDuel’s handle or revenue totals in its report, though it’s known that the company will finish no worse than second in each category.
On a more positive note, its revenue-to-handle ratio translated to a 12.7 percent hold, which was the highest of any New York operator during the week.
Fighting for growth
One of the main reasons that PENN is still bullish on the future of ESPN Bet is because of its branding and ability to cross-promote its product with ESPN.
There are an estimated 10 million ESPN app users in New York, which gives the sportsbook a huge audience to potentially poach from its sister brand. That gives it a foot in the door that its competitors, particularly the smaller ones, do not have.
While ESPN Bet may not have displaced any of the leading New York operators, the $9.1 million handle it reported was higher than any monthly handle achieved by WynnBet, who sold its sports betting license to ESPN Bet earlier this year.
PENN executives said during a recent investor event that ESPN Bet has welcomed 1.8 million users since it debuted near the end of last year. The sportsbook also highlighted a 151 percent increase in GGR and a 161 percent growth in unique monthly users as evidence of the platform’s early success and potential.
Still, ESPN Bet has a long way to go before it can become one of the New York leaders. DraftKings generated $21.3 million, or 18.5 times as much GGR during the week ending on Oct. 6 as ESPN Bet did.
Fanatics is also continuing its rapid ascent in the sports betting industry and will likely finish third in weekly handle for the second straight week once FanDuel’s report is published.
