Penn Entertainment, Sensor Tower
In its second-quarter investor presentation, Penn boasted that it’s neck and neck with its largest competitors when it comes to weekly active users, according to Sensor Tower data. The research firm also found that ESPN Bet is third in app downloads share at 13%.
Sensor Tower
While that sounds promising, Wasiolek said it doesn’t bear out in market-share data, or the company’s revenue. That suggests ESPN Bet users are committed but make smaller bets, or that the service is collecting less money on bets it fields.
A Worldwide Leader in Sports-betting?
Despite those tough odds, Grove and Wasiolek agreed that ESPN Bet shouldn’t be counted out. Even if the service is never a top-tier player, it can be lucrative for Penn and ESPN.
“They’re going to have a piece of a huge, growing pie that we think is already becoming increasingly profitable,” Wasiolek said.
While avid sports bettors may already be hooked on a betting app, casual bettors who like ESPN’s content could flock to ESPN Bet, especially as it launches in new states.
“They have the brand power of ESPN, and the monthly users on that platform are hundreds of millions,” Wasiolek said. “So it’s about engaging those people.”
That gives ESPN’s namesake betting app a big advantage, but it’s unclear whether that will be enough in the ruthless sports betting market.
“ESPN is a singular brand, and there’s no doubt that it provides Penn with unique opportunities, and there’s no doubt that you’ll see Penn unlock more of those opportunities as the integrations across the ESPN ecosystem become deeper and more meaningful and as the ESPN Bet product improves,” Grove said. “The problem is that Penn’s competitors are not standing still.”