Penn Entertainment said Tuesday it was paying Wynn Resorts $25 million to acquire the company’s mobile sports betting licenses in New York. Pending approval by New York gaming regulators, Penn expects to launch ESPN Bet in the state later this year.
ESPN Bet, which Penn unveiled last year through a 10-year $1.5 billion agreement with the sports and entertainment network, replaced the casino operator’s Barstool Sportsbook and currently operates in 17 states.
Could Nevada be next?
At the groundbreaking ceremonies for Penn’s $206 million expansion at M Resort, CEO Jay Snowden alluded to Nevada’s in-person registration requirement for mobile sports betting as a hang-up that will keep ESPN Bet on the sidelines for now.
“I would say it will happen at some point, but the online sports betting law is a bit nuanced,” he said. “It’s a more challenging issue since we only have one property in Las Vegas right now. So it’s convenient for some, but not for all. I would say it’s definitely in the future.”
Wynn closed the bulk of its WynnBet sports betting operations last year and recently pulled the name off its sportsbook at Encore Boston Harbor in Massachusetts. WynnBet is still tied to the sportsbook at Wynn Las Vegas.
So, could Penn strike another deal with Wynn and rebrand the Strip casino’s sportsbook as ESPN Bet? That would give the brand a physical location for in-person registration. Any agreement would need Nevada regulatory approval. Snowden may field questions on this topic Thursday when the company hosts its fourth quarter and year-end conference call with analysts.
New York had the largest sports betting market in the U.S. last year, generating $1.7 billion in gaming revenue. As a comparison, Nevada’s sports betting revenue in 2023 was $481.3 million.
“New York has been highly competitive since day one of legalization, as Penn will compete with [some of] the largest brands in online gaming,” JMP Securities gaming analyst Jordan Bender wrote in a research note Tuesday. “The market has proven lopsided since launch as operators have generally taken a conservative approach toward spending on promotions and marketing.”
