ESPN Bet sees $9.1M New York handle in first full week

The newly launched ESPN Bet has had a subdued start in New York, with the latest figures from the New York State Gaming Commission revealing that the sportsbook, owned by PENN Entertainment, took a $9.1 million handle and generated $1.1 million in gross gaming revenue (GGR) for the week ending October 6. This marked the sportsbook’s first full week of operations in the Empire State.

ESPN Bet made its New York debut on September 27, and across its first ten days, the platform accepted $12.1 million in sports wagers and earned $1.3 million in gross revenue. In its first full week, ESPN Bet ranked seventh in the state for total handle, trailing behind established players like FanDuel, DraftKings, BetMGM, Caesars, Fanatics, and Rush Street Interactive. However, ESPN Bet outperformed smaller platforms such as Bally Bet and Resorts World.

In terms of revenue, ESPN Bet placed sixth, just ahead of BetRivers, which recorded $1 million in GGR during the same week. While the debut numbers in New York may not be groundbreaking, the state represents a notable market for ESPN Bet as PENN Entertainment looks to gain traction in the highly competitive online sports betting landscape.

With an estimated 10 million ESPN media app users in New York, PENN is banking on cross-promotion between ESPN Bet and the ESPN app to attract a large segment of these users to its sports betting platform. PENN is currently working on integrating the two apps in the U.S. market to facilitate this strategy.

ESPN Bet replaced WynnBET in New York after that sportsbook ceased operations in the state in July. ESPN Bet's $9.1 million handle in its first full week already surpassed any monthly handle that WynnBET achieved in New York this year, suggesting a positive early reception despite the stiff competition.

During an investor event held at M Resort & Casino in Henderson, Nevada, PENN executives shared key statistics about ESPN Bet's performance across the U.S. market to highlight the brand's growth. According to PENN, ESPN Bet has garnered 1.8 million users since its inception, leading to an 85% increase in the company’s overall customer base.

Year over year, the joint venture between PENN and ESPN has seen a 151% rise in GGR, while the number of monthly unique users has surged by 161%. The early results in New York also appeared promising to the company. PENN disclosed that for the first three days of operations in the state, ESPN Bet’s average daily handle per bettor was 296% higher than its nationwide average, and New Yorkers deposited twice as much as bettors in other states.

Additionally, PENN has adjusted its financial outlook for ESPN Bet in Q3 2024, anticipating a smaller loss than initially forecasted. The company attributed this improvement to better-than-expected hold rates, driven by an increased focus on parlays and lower promotional expenses.