With an impressive start, ESPN Bet upends the US sports betting market by surpassing FanDuel's record with 1.1 million downloads in its first week of operation. With 70% of all sportsbook app downloads, ESPN Bet's quick rise suggests that the market dynamics are shifting, and it presents a serious threat to market leaders like FanDuel and DraftKings.
ESPN Bet's Vibrant Launch: 1.1 Million Downloads in First Week
With the intention of completely upending the US sports betting industry, ESPN Bet is off to a great start. The sportsbook launched on November 14 in 17 states and saw over 1.1 million downloads in its first week of business. This is more than the previous record of 486,000, which FanDuel set during the 2022 Super Bowl.
Since the platform's introduction in a number of significant markets, such as Arizona, New Jersey, Pennsylvania, Ohio, and so on, ESPN Bet has dominated app store most-popular lists. According to JMP Securities, ESPN Bet was in charge of almost 70% of all sportsbook app downloads during the initial stage.
Changing Relationships: The Challenge of ESPN and Fans Dominance of FanDuel and DraftKings
FanDuel and DraftKings emerged as the two dominant players following the end of the US federal ban on sports betting in May 2018. When combined, they control about 77% of the market, with BetMGM trailing far behind with 10%.
It is anticipated that the arrival of sportsbooks affiliated with well-known companies like ESPN and Fanatics will upend the current market. Operators spend a lot on advertising to entice bettors; DraftKings spent $313 million on marketing during the third quarter of 2023.
ESPN—a Disney company—has been aggressively pushing the new sportsbook project on social media, in broadcasts, and in advertisements. Odds are incorporated into many different content types by the well-known network, including its fantasy sports platform.
The Effect of ESPN Bet: Penn Entertainment's Strategic Change and Stock Increase
The operator of ESPN Bet, PENN Entertainment, was granted a ten-year initial license to use the name of the media behemoth in August. PENN was forced to give up its previous sportsbook operating under the Barstool brand as part of this $1.5 billion deal.
PENN paid just $1 to Dave Portnoy for the media company Barstool Sports, which it had originally acquired for around $551 million.
Penn's profitable opening week performance during ESPN Bet caused its share price to rise by about 7%. Analysts at Bank of America upgraded the stock from a neutral position to a buy recommendation due to the substantial interest from wagerers.
