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ESPN BET’s much-anticipated debut in New York has been postponed due to regulatory setbacks. PENN Entertainment, which owns the ESPN BET brand, is awaiting approval from the New York State Gaming Commission (NYSGC) to proceed with its entry into the state’s lucrative sports betting market.
Originally planned for late August, the sportsbook’s launch is now on hold until PENN gets the go-ahead from the NYSGC. The delay stems from PENN’s acquisition of a Wynn Resorts-linked company that holds a New York sports betting license. PENN cannot move forward without the NYSGC’s approval of this deal.
According to Covers, the NYSGC has yet to review PENN’s request. A meeting is scheduled for September 23, 2024, to address the purchase. This delay means ESPN BET may not go live in New York until late September or later if additional issues arise.
Earlier this year, PENN Entertainment struck a deal to acquire Wynn Interactive Holdings, securing the rights to a New York sports betting license. This $1.5 billion agreement, spanning 10 years, is central to PENN’s strategy for ESPN BET to penetrate the New York market—the largest legal sports betting market in the US. The absence of ESPN BET in New York could result in significant lost revenue for the brand.
PENN Entertainment is frustrated by the delay, as the company had aimed to launch ESPN BET in New York ahead of the NFL season, a peak time for sports betting. Although ESPN BET operates in 18 other states, it has struggled to compete with giants like DraftKings and FanDuel. A New York launch would significantly increase its visibility and earnings.
In its second-quarter investor presentation, PENN highlighted the importance of New York in expanding ESPN BET’s digital market share. The company emphasized that entering the New York market would extend ESPN BET’s reach to cover 46% of the US population. For now, however, PENN must wait for the regulators’ approval before moving forward.