The New York State Gaming Commission (NYSGC) has recently made headlines with a significant decision: the transfer of Wynn Resorts’ digital sports betting license to Penn Entertainment. This transition could potentially bring the ESPN Bet brand to life in New York in the near future, possibly even as soon as this weekend.
Wynn Resorts to Penn Entertainment
In a strategic move, the NYSGC approved the transfer of WynnBet’s mobile sports betting license to Penn Entertainment. This decision follows WynnBet’s cessation of betting activities in New York last month, a result of its agreement to sell its New York mobile sports betting license.
Chris Rogers, Penn’s executive vice president, chief strategy and legal officer, expressed confidence in the transition. He stated that while the company has “a few boxes to check” to ensure readiness from a technology standpoint, they are prepared to launch in a matter of days. This could mean a soft launch of ESPN Bet as early as the upcoming weekend, pending final approvals.
Transition to ESPN Bet
Penn Entertainment is not just taking over a license; it is rebranding its retail sportsbooks in markets focused on sports. The ESPN Bet brand, which was introduced last November, aims to leverage the immense popularity of the ESPN brand. The first ESPN Bet-branded retail sportsbook opened earlier this year at Hollywood Casino at Greektown in Detroit. The transition in New York aligns with Penn’s broader strategy to establish a strong presence in the mobile sports betting landscape.
Record-High Betting Handles
New York has witnessed a remarkable surge in mobile sports betting activity. In August, the mobile sports betting handle reached an impressive $1.44 billion, marking a year-on-year increase of 28.8%. This figure also represents a 13% rise from July’s handle of $1.26 billion. Such growth reflects the increasing interest and engagement of New York residents in mobile sports betting.
Revenue Growth
Revenue generated from mobile sports betting in New York also saw significant growth, totaling $125 million in August. This figure indicates a 26.9% increase compared to the same month last year. However, it is worth noting that this revenue is 10.9% lower than the revenue generated in July. The fluctuation in revenue highlights the dynamic nature of the sports betting market, where various factors can influence both handle and revenue levels.
Major Players: FanDuel and DraftKings
In terms of market share, FanDuel and DraftKings continue to dominate the landscape. Together, they accounted for approximately two-thirds of the Gross Gaming Revenue (GGR) in August. FanDuel reported a GGR increase of 25.1%, achieving $52.6 million from a $511.6 million handle. Meanwhile, DraftKings maintained its lead in handle with $526.7 million, representing a year-on-year growth of 17.9%. However, DraftKings’ GGR of $43.4 million, while also up 22.9%, placed it behind FanDuel in terms of revenue.
Implications for Future Growth
The recent developments in New York’s mobile sports betting scene, including the license transfer and record-breaking handles, indicate a thriving market poised for continued growth. The anticipated launch of ESPN Bet is expected to further enhance competition and engagement among bettors, potentially leading to even higher betting handles and revenue figures in the coming months.
The transfer of Wynn Resorts’ digital sports betting license to Penn Entertainment marks a pivotal moment in New York’s mobile sports betting landscape. With the anticipated launch of ESPN Bet and a growing handle, New York is positioned to remain a leader in the sports betting arena. The increasing competition from major players like FanDuel and DraftKings, combined with the engagement of new brands, will likely keep the market dynamic and evolving. As we move forward, it will be essential to monitor these developments and their impact on the state’s gaming industry.
The landscape of mobile sports betting in New York is undergoing significant changes. With new brands entering the market and existing players continuing to expand, the future looks promising for both operators and bettors in the Empire State. The combination of increased handles, growing revenues, and strategic brand expansions will shape the trajectory of sports betting in New York for years to come.