Posted on: December 12, 2024, 07:33h.
Last updated on: December 12, 2024, 07:33h.
Penn Entertainment’s (NASDAQ: PENN) ESPN Bet mobile sportsbook went live just over a year ago and signs are emerging it’s benefiting from ties to the sports broadcast network.
A recent survey by YouGov notes the Penn entity is the fifth-largest sportsbook operator in the US, trailing rivals DraftKings, FanDuel, BetMGM, and Caesars Sportsbook, but ESPN Bet is benefiting its relationship with “the worldwide leader in sports” and prospective clients that hold favorable views of ESPN are likely to give the betting app a try.
But it is worth noting that this can work both ways. Among Americans with a strongly negative rating for ESPN, nearly 0% say they would consider ESPN BET. By comparison, 5% of this audience say they would consider DraftKings and FanDuel respectively,” according to YouGov. “Luckily for the brand, Americans with a strongly positive rating of ESPN number nearly double the share of Americans with a strongly negative rating for the media brand (23% vs 10%).”
The YouGov survey was released at a time when there are mounting signs that FanDuel and DraftKings maintain a stranglehold on domestic online sports betting market share, but also indications are emerging that the Penn business is making progress.
Penn Paid Big for ESPN Perks
Signs that ESPN Bet is making strides is perhaps some relief to wary Penn investors, but they’re also likely to demand than incremental progress because the regional casino operator paid a significant sum to gain rights to ESPN branding.
When the gaming company struck its deal with the sports network in August 2023, it announced it’d pay ESPN $1.5 billion over 10 years to use its name while granting the media entity rights to $500 million in equity warrants. Some investors would later criticize the move, claiming overpaid.
Still, data indicate ESPN Bet is capturing a younger client base than competitors such as DraftKings and FanDuel while luring more female bettors. Forty-three percent of ESPN Bet clients are between the ages of 21 to 29 compared to 30% for DraftKings and FandDuel, noted YouGov.
“ESPN BET also has a slightly higher share of women in its user base, although the gap is nowhere near as big as that witnessed in the age breakdown of the audience. Just under a third of ESPN BET weekly users are women compared to 27% of DraftKings users and 28% of FanDuel users,” added the research firm.
ESPN Bet Carving Out Unique Niches
In the US, football is far and away the most wagered on sport followed by basketball. That’s cemented by the fact that more than half of DraftKings and FanDuel clients make one of those two sports their most wagered on, but ESPN Bet is blazing a different trail.
Half of ESPN Bet customers rank basketball as their most bet on sport followed by soccer at 49% and eSports at 41%, according to YouGov. Less than a third of DraftKings and FanDuel rank soccer that high and about a quarter have similar affinity for eSports. Those data points could be indicative of ESPN Bet finding a pathway to increased market share without a deep dependence on football.
“This variance underscores ESPN BET’s unique positioning, catering to non-traditional and emerging sports preferences while maintaining relevance in mainstream sports betting markets,” concluded YouGov.
