PENN VP: March Madness an Ideal Time to Push ESPN BET Model

PENN VP: March Madness an Ideal Time to Push ESPN BET Model

Despite negative business news and analyst opinions regarding the future of ESPN Bet and theScore Bet in Canada, Jason Birney, Vice President, Operations, at PENN Interactive, states that it’s business as usual, and major events like March Madness will aid in attracting more bettors to their platform. 

 

Championship of the Nation Tonight 

This evening, top seeds Florida and Houston will compete in the March Madness men’s college basketball championship (8:50 p.m.). EST on CBS. 

For Birney, it’s an excellent chance to evaluate the current status of the ESPN BET platform amid the heightened betting interest in NCAA basketball.

"[March Madness] is a huge opportunity to attract and retain customers ahead of the NBA and NHL playoffs,” said Birney. “It has also provided us a chance to showcase our recent improvements – account linking, livestreaming and expanded wagering options – which have made ESPN BET a much more dynamic product. Through these enhancements, we’re able to better connect with and more deeply engage bettors.

“We’re also looking at this tournament, and our recent enhancements, as a springboard into the NBA and NHL playoff season, which presents a great opportunity with ESPN as the lead programming partner.”

 

Utilizing a Distinctive Formula 

It’s captivating to observe how ESPN BET aims to increase its presence in the U.S. sports betting scene, gradually competing against giants like DraftKings and FanDuel, partly by adopting theScore Bet strategy from Ontario. Recent news articles indicate they are struggling with a 2-3% share of the U.S. sports wagering market. PENN has the option to terminate its ten-year agreement with ESPN Bet after the third year, in 2026. 

As reported by H2 Gambling Capital, a global provider of market data for the gambling sector, ESPN BET ranks as the fifth largest sports betting operator in the U.S. with a market share of 2.6%. 

Those living north of the border recall when theScore was focused on sports broadcasting, prior to its shift towards a sports betting and online casino platform. In October 2021, PENN purchased theScore BET from the Levy family in Canada. 

 

ESPN BET Started in 2023 

ESPN BET likewise operates under a comparable model – linked to a content-heavy sports cable network established in 1979, now a dominant brand and versatile platform in millions of U.S. homes. 

The ESPN BET app and website, which was previously Barstool Sportsbook, was launched in November 2023 and is currently accessible in 19 states and Washington D.C. 

Similar to theScore BET in Canada, PENN utilized an existing sports content platform and developed a sports betting platform from it, employing their own proprietary in-house technology, while other major sportsbook operators take the opposite approach – building their own content platform based on the betting lines of the sportsbook. 

 

App Redesign 

Benefit or drawback, only time will reveal. However, Birney views occurrences like March Madness as a chance to intensify their approach. 

“Rather than swipe back and forth between apps to get news and information, then look at lines and place wagers, we want to offer our users the ability to see odds and available wagers within the news and content they’re already visiting before easily transitioning over to place the wager in ESPN BET,” Birney said.

“Between ESPN’s linear programming, media app, fantasy products and massive social following, there’s a myriad of daily touchpoints to reach the recreational bettor, who at the end of the day is a sports fan looking to heighten their entertainment through wagering. 

 

Revenue Jump in Ontario

"Since we launched, ESPN BET continues to be more and more integrated into ESPN’s content and products, allowing us to authentically engage with the most passionate sports fans. our proprietary sports betting technology platform is built with custom features that allow us to integrate with media products. The same features that allow cross-platform integrations between theScore and theScore Bet are being deployed across the ESPN media app and ESPN BET.”

The success in Ontario is difficult to dispute, as this market features 49 licensed operators that brought in CAD$7.1 billion (CAD$280 million in revenue) in overall cash wagers this February, based on data from iGaming Ontario. 

theScore Bet, operating in Ontario, has shown positive financial results since its launch in 2022. Image/PENN screenshot

 

Slow ESPN Bet Outcomes 

As per H2 Gambling Capital, theScore BET is projected to hold a 5% market share in Ontario in 2024, positioning it as the 8th largest operator in the province. 

PENN Entertainment's Q4 financial results (ending Dec. 31, 2024) indicated that theScore BET achieved “record monthly NGR” in January, showing a 22% year over year revenue increase in FY24 compared to FY23. 

Birney mentioned that they have put in significant effort to improve the product selection at ESPN BET, creating promotions that are more user-friendly, implementing instant withdrawal options, and refining the app experience through redesigns. 

Last autumn, they launched account linking between ESPN and ESPN Bet accounts, essential for activating extra personalization features that tailor the user experience according to individual preferences and interests, he mentioned. 

“Account linking allows us to serve fans markets for their favorite teams, or fantasy rosters,” Birney said. 

The PENN and ESPN teams have collaborated to ensure ESPN Bet is featured prominently in programs such as Get Up, First Take, and the Tournament Challenge Marathon, while betting analysts have appeared on SportsCenter and other shows to talk about tournament betting and incorporate ESPN Bet into the Bracket Challenge. 

 

NHL and NBA Playoffs Are Nearing Quickly 

Birney highlighted several unique markets from ESPN talent and special offers like the “March to 2 Million Challenge” and the Early Victory promotion, which rewards moneyline bets in-game whenever a team leads by 17 points or more. 

Will all this be sufficient to silence the discussion surrounding PENN's potential divestment from the ESPN BET sportsbook, especially after PENN stock reached a 52-week low of USD$13.49 three days ago? Who can tell? 

However, with the NBA and NHL playoffs approaching quickly, we will shortly gain a better understanding of the feasibility of the direction they are taking.