ESPN Bet gears up for November 14 launch across 17 US states

ESPN Bet, the forthcoming online sportsbook by the sports broadcasting giant, announced it is all set to make its debut on November 14, covering 17 states across the US. This launch is of significant importance for Penn Entertainment, which partnered with ESPN to be the operator behind the brand, and the announcement coincided with the publication of the company's Q3 trading update.

The foundation for this launch was laid through a partnership worth $1.5 billion between Penn and Disney-owned ESPN, unveiled in August. The timing of the launch on November 14 aligns with the Thanksgiving week, a period teeming with sports events that captivate the nation's attention.

The week encompasses NCAA college football rivalry week and a Super Bowl rematch between the Kansas City Chiefs and the Philadelphia Eagles, to be televised on ESPN's Monday Night Football.

Jay Snowden, CEO and President of Penn Entertainment, stated: "This strategic alliance is expected to further expand our digital ecosystem and drive re-engagement with the millions of customers in our digital and retail databases, leading to compelling cross-sell opportunities."

Penn currently holds betting licenses in 17 states, including key markets like New Jersey, Pennsylvania, Massachusetts, Illinois, and Ohio. The company has been vocal about its goal to secure a 20% share of the US online sports betting market through ESPN Bet.

To kick off the launch, ESPN is preparing for a comprehensive outreach, targeting an estimated audience of 200 million across linear and digital platforms. An advertising campaign featuring SportsCenter anchors Scott Van Pelt and Elle Duncan has also been teased. In the upcoming months, Penn is poised to expand its platform and media integrations with ESPN.

ESPN, as the largest sports media brand in the US, has a digital presence with over 105 million monthly unique digital visitors. Its social media following, which includes 370 million fans and 25 million subscribers to its ESPN+ streaming service, further solidifies its status as a media powerhouse. Notably, ESPN also holds the distinction of being the most-followed brand on TikTok, boasting 41 million followers worldwide.

Apart from the previously mentioned states, ESPN Bet is also scheduled to launch in Arizona, Colorado, Iowa, Indiana, Kansas, Louisiana, Maryland, Michigan, Tennessee, Virginia, and West Virginia. However, it's worth noting that these launches are contingent on receiving the necessary final approvals.

This latest development comes on the heels of Penn Entertainment's recent sale of its previous betting offering, Barstool, back to its founder, David Portnoy, for a nominal fee of $1. The deal included various agreements, including non-compete clauses, while Penn retains rights to a percentage of the gross proceeds from any future sale or monetization of the brand.

The announcement of the launch date coincides with Penn Entertainment's Q3 financial results. The standout figure from the quarter was a loss of $724.8 million, largely attributed to the divestiture of Barstool in August. Despite this setback, Penn reported revenue of $196.3 million for its interactive gaming segment in Q3, marking a 24.0% increase.

However, the adjusted EBITDA for the segment recorded a loss of $50.2 million, which was primarily influenced by a reduction in marketing activities in the United States as the company transitioned to the ESPN Bet brand.