Impressive Growth in GGR and Handle Share Signals Early Success

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

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Last updated: January 1, 2024

The mobile sports wagering software ESPN Bet, which was introduced by Penn Entertainment, has performed admirably in its early stages. The platform has achieved double-digit gross gaming revenue (GGR) share in Indiana, Iowa, and Maryland, demonstrating its noteworthy performance in these states. The early signs of success are changing Penn Entertainment’s story in the cutthroat world of sports betting.

ESPN Bet has a significant influence, especially in Indiana, Iowa, and Maryland, where the app controls a double-digit GGR share, according to Macquarie analyst Chad Beynon. Beynon reported that handle share had increased by an estimated 500 basis points, indicating a notable increase from the prior range of 1-2%. This increase is especially notable in light of the fact that the handle increased by just 5% in New York, a crucial market where ESPN Bet is not present.

With its double-digit GGR share and robust handle share growth, ESPN Bet is positioned to be a significant player in the changing sports betting market. Considering how competitive the industry is, Penn Entertainment needs to build on these early accomplishments.

ESPN Bet’s Strategic Partnership and Financial Implications for Penn

The August announcement of ESPN and Penn Entertainment’s alliance was a major step forward for both companies. As part of the arrangement, Penn committed to paying ESPN’s parent firm, Walt Disney, $1.5 billion over a ten-year period. ESPN made a substantial financial commitment by receiving the rights to $500 million worth of Penn warrants in exchange.

The introduction of ESPN Bet represents the conclusion of multiple years of efforts on the part of ESPN to gain traction in the sports betting industry. In addition to giving ESPN the required platform, the Penn deal also ended Penn’s $163 million deal with Barstool Sports, indicating a move toward a more profitable alliance.

Analyst Outlook and Market Response: Penn Entertainment’s Positive Trajectory

Chad Beynon, an analyst at Macquarie, was upbeat about ESPN Bet’s early results, pointing out that the platform can increase its GGR share into the double digits. Beynon issued a warning on greater hold rates during promotional periods, but she kept her “outperform” rating for Penn Entertainment shares and her $38 price target, indicating a significant 45.2% increase from the closing price.

ESPN Bet’s early performance was well received by the market, as seen by Penn Entertainment’s US-listed shares rising by almost 9%. Given these market conditions and the optimistic assessment of analysts, Penn Entertainment is positioned to be a formidable competitor in the booming sports betting industry.

Future Prospects and Industry Positioning for ESPN Bet and Penn Entertainment

The noteworthy results that ESPN Bet has achieved in Indiana, Iowa, and Maryland offer hope for the company’s future. Even though the platform is still in its early phases, its competitive advantage appears to be strengthened by its ability to gain a sizable GGR share and exceed growth in important areas.

Additionally, Penn Entertainment stands to benefit more from ESPN Bet’s success as it allays worries about the company’s presence in sports betting and the allegedly hefty cost of obtaining ESPN branding. ESPN Bet’s continued success in navigating the changing sports wagering market is evidence of the potential benefits of media conglomerates and well-established gaming companies forming strategic alliances.