ESPN BET, the company’s betting platform operated by PENN Entertainment, will officially launch on Nov. 14 in 17 states across the United States, subject to final approvals, and will thus mark the introduction of the sports betting platform to select locales. The 10-year, $1.5 billion deal grants PENN Entertainment media, marketing services, branding and additional rights from the network. Moreover, the deal includes $500 million in warrants that will vest throughout the term, and PENN Entertainment is matching its $150 million annual payment with equivalent marketing spend. Adjusted EBITDA potential for the deal with a retail cross-sell upside lands between $500 million and $1 billion and also includes $159 million in performance warrants. These are predicated on total market share, a tranche currently set at 25% or more at a strike price of $28.95.
The network has released a teaser commercial featuring SportsCenter anchor Scott Van Pelt showcasing the cohesion between the ESPN and ESPN BET apps. A full creative campaign will be released around the platform’s launch, which will also include SportsCenter anchor Elle Duncan.
Surrounding the launch of the app, ESPN will rebrand its Daily Wager program to ESPN BET Live, set to take effect on Nov. 10. The program recently moved back to Bristol after just over three years broadcasting from The LINQ Hotel + Experience studio in Las Vegas, Nev. The show broadcasts Thursday-Monday on ESPN2 and features personalities including Joe Fortenbaugh and Erin Dolan. Ahead of the launch, ESPN is using official odds provided by the ESPN BET platform across its content portfolio.
The announcement of the launch was made during PENN Entertainment’s quarterly earnings call by the company’s chief executive officer and president, Jay Snowden. States currently slated to be part of the launch are Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, New Jersey, Ohio, Pennsylvania, Tennessee, Virginia and West Virginia.
“Our ESPN BET product will include a wide array of popular betting options, including featured bets, quick bets, player props, same game parlays and more,” Snowden said. “In connection with the launch, ESPN will be implementing an initial wave of exclusive integrations targeting their 200 million loyal fans across their linear and digital platforms, including an advertising campaign headlined by SportsCenter anchors Scott Van Pelt and Elle Duncan. Looking ahead, we will be introducing even deeper platform and media integrations with ESPN over the upcoming months, providing an unmatched and seamless media/betting experience that will appeal to sports fans across the country.”
ESPN is in the midst of developing its own direct-to-consumer project, Flagship, and The Walt Disney Company is reportedly in the midst of searching for a strategic partner to purchase a minority equity stake in the company. Disney reported the financial data for its sports sector through the first three quarters of 2023 recently, revealing that ESPN has lost 8.35% in operating income, but is still generating an overall profit of $2.9 billion.
