The New York State Gaming Commission detailed ESPN Bet’s humble first weekend in the Big Apple in a new revenue report.
The PENN Entertainment-powered sportsbook accepted $3.04 million (0.58 percent) of the state’s $516.8 million online sports betting handle. This only accounts for three days during the week ending on Sept. 29 since ESPN Bet New York launched in full on Friday, Sept. 27.
ESPN Bet faces a stiff battle for place in the New York market, though it will have an easier time getting the ball rolling during the NFL season as opposed to a different time in the year.
Getting out of the blocks
ESPN Bet soft-launched in New York on Thursday, Sept. 26 before it opened in full the following day.
The sportsbook’s first three days in New York resulted in $165,673 in gross gaming revenue (GGR) revenue, or about 0.3 percent of the $52.7 million in GGR reported by all NY operators combined.
The combined GGR represented an increase of about $9 million from the previous week ending on Sept. 22.
ESPN Bet was allowed to launch in New York after PENN acquired WynnBET’s sports betting operator’s license in a $25 million deal agreed to in February and approved by the state regulator in September. Company officials had hoped to get up and running before the college football and NFL seasons began, though the state took too long to review its application to meet that goal.
NYSGC Executive Director Robert Williams said that, upon review, the commission did not find “disqualifying elements” in PENN’s license application.
PENN also agreed that ESPN Bet would not promote its sportsbook on college campuses or target college-aged persons with promotions and marketing opportunities.
New York sports betting competition
While ESPN Bet is now up and running in New York, control of the state’s market is in limbo between FanDuel and DraftKings.
According to the commission’s report, FanDuel beat DraftKings in handle and revenue—but not by much.
FanDuel reported $198.2 million in handle and $24.2 million in GGR, while DraftKings was just behind at $196.3 million in handle and $17.4 million in GGR.
ESPN Bet ranked seventh of nine operators in handle and last in revenue for the weekly period.
Fanatics, BetMGM, and Caesars all took between $34 million and $39 million in bets during the week. Caesars turned that into the most revenue ($3.8 million), followed by Fanatics ($2.3 million) and BetMGM ($1.4 million).
BetRivers, Bally Bet, and Resorts World rounded out the bottom of the respective lists and did not generate more than $900,000 in revenue.
The strong overall week of sports betting is a great benefit to state officials and a variety of public-facing projects and operations. The $52.7 million in GGR resulted in $26.9 million in taxes based on New York’s 51 percent tax standard for online sports betting operators.
The gaudy numbers are likely to continue thanks to the NFL and the return of the NBA, especially if the New York Giants pull off more upsets like they did in NFL Week 5.
