After several delays due to regulatory guidelines, ESPN BET has finally gone live in the Empire State after a successful soft launch.
Ready, Set, Launch
Penn Entertainment acquired Wynn Interactive Holdings’ New York mobile sports betting license in February with the sole intention of launching in the nation’s biggest sports betting market in time for the NFL and college football seasons. But there remained regulatory hurdles that had yet to be cleared and ESPN BET was on the outside looking in when the NFL season kicked three weeks ago.
After what many industry insiders believe has been an underwhelming performance by ESPN BET since its inception in November of last year, getting on board in New York before the calendar’s biggest betting season was important.
During a second-quarter presentation to investors, the company stated, “Our upcoming launch in New York, subject to regulatory approvals, will meaningfully expand our digital footprint and further leverage ESPN’s unparalleled sports media reach.”
Regulatory Approval
After receiving the long-awaited regulatory approval from the New York Gaming Commission earlier this week, a soft launch was released on Thursday followed by a full launch on Friday. ESPN BET is now an entry in the fiercely competitive New York digital sports betting market.
New York is now ESPN BET’s 19th market with the others being Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia.
Chris Rogers, the chief strategy and legal officer and secretary of Penn Entertainment said that ESPN BET’s launch in New York sports will help “expand the market” in the Empire State. “That’s been our experience in other jurisdictions where we’ve launched,” says Rogers. “We think we’re attracting a new bettor. And while there could be some shifting and cannibalization of existing operators, we think we are growing the market.”
New York’s Third Rail
New York regulators have been extremely sensitive regarding sportsbooks marketing to college-age young adults. As New York sportsbook operators know, offering any in-state college sporting events or college player props in general is prohibited. Despite the lack of those events on operators’ sports betting menus, the market is bigger than any other in the nation, and sports betting sites pay a 51% premium on revenues to be part of New York’s robust gaming market.
Brian O’Dwyer, chair of the NYSGC, had grave concerns that ESPN BET would be tempted to market to a younger audience, some who may not be of legal gambling age in the state. O’Dwyer had said the committee was “very, very worried and upset” but the newest operator assured the NYSGC that it had nothing to worry about.
Rogers said: “We as a company are committed to avoiding the promotion of sports betting on college campuses. This is an issue very near to our heart given our partnership with ESPN, which has various college [programming], including College GameDay. Our commitment at Penn in addition to our partners at ESPN is to make sure that we are in adherence to all requirements related to promotion of sports betting on college campuses.”
