How Big Will ESPN Bet Become?

A view of the logo during ESPN The Party. Photo by Mike Windle/Getty Images for ESPN/AFP.

This week, the U.S. legal sports betting industry was shaken up by the news that ESPN will be joining the betting market through a partnership with PENN Entertainment, with the goal of becoming a top sportsbook.

There has been much discussion among industry experts, rival U.S. sportsbooks, and bettors about their predictions for the ESPN Bet brand. The main question is whether this new legal sports betting platform in America will be able to compete with the estimated 90% market share currently held by FanDuel, DraftKings, BetMGM, and Caesars and their top sports betting apps.

On Thursday, Odds Assist conducted a survey asking 1,000 American bettors aged 25 and older about their interest in the upcoming launch of the ESPN Bet brand later this summer or in the fall. The survey aimed to gauge the potential popularity of ESPN Bet among bettors.

Lofty goals

PENN made a significant investment of $1.5 billion to partner with the leading sports media company, and included an additional $500 million in warrants to acquire around 31.8 million PENN common shares for access to ESPN Bet. The stakes are high!

ESPN is poised to quickly compete with the top two sports betting providers, FanDuel and DraftKings, and surpass the market shares of other major players in the legal sports betting industry in the United States.

CEO Jay Snowden stated during a PENN Entertainment earnings call on Wednesday that the company aims to capture a 20% share of the online sports betting market by 2027.

The Odds Assist Poll simply further strengthens that feeling.

Results of the survey

According to a survey by Odds Assist, more than half (54%) of current sports bettors expressed their intention to join ESPN Bet once it becomes available among the existing betting platforms. 38% of respondents were undecided about signing up for an ESPN Bet account, while only 8% stated that they had no interest in trying out the new betting option.

Out of those surveyed, 54% expressed interest in trying ESPN, with 33% planning to make ESPN Bet their main sports betting platform. Additionally, 48% stated that they would use ESPN as often as their current sportsbook.

Out of those surveyed, only 3% believe ESPN Bet will be their primary sports betting site once it is released, while just 5% anticipate using it less than other options. Additionally, 11% are waiting to see the odds provided before making a decision.

The most intriguing discovery is that 46% of respondents predict that ESPN Bet will emerge as the most popular sportsbook in America within the next three years.

According to the survey results, 63% of respondents indicated they would trust ESPN Bet more than other options because of its association with ESPN. 33% stated that the company’s media affiliation did not affect their perception of the new sportsbook, while only 4% said they would trust ESPN Bet less due to its ties to ESPN.

Heavyweight meets heavyweight

Despite its lukewarm relationship with Barstool Underscoreg, PENN Entertainment was already a prominent player in the U.S. legal sports betting industry.

PENN gains significant and immediate exposure through the partnership with ESPN, while ESPN finally secures the sports betting partnership they have long been pursuing.

PENN now has access to a massive audience of over 105 million digital visitors and an estimated total audience of 370 million. Additionally, their new sports betting partnership will benefit 25 million ESPN+ subscribers.

So…

With plenty of attention on ESPN and PENN, the potential for ESPN Bet to thrive as a legal sports betting platform is high. ESPN’s widespread reach and PENN’s expertise in serving American sports bettors make for a promising partnership.

Fox Corp. has demonstrated that partnerships between wagering providers and media entities do not always guarantee success. Both Flutter and Fox Corp. have removed the FOX Bet brand from the U.S. market. PointsBet, despite its partnership with NBCUniversal, had to sell its U.S. assets last month. Fubo and Maxim, media entities, also failed in their efforts to gain market share.

However, the latest survey suggests that a significant number of people believe that ESPN Bet has a good chance of thriving in the growing U.S. legal sports betting industry.

Written By:
Perry Sandra

Perry Sandra and betting go hand-in-hand. Both are characterized by “odds”. Dave fancies himself as one of the most dedicated sports and pop-culture junkies around, to the chagrin of his family and friends. Following sports for 50 years and writing about it for 20, Dave hasn’t found a sport yet that can’t contribute to 2-3 straight hours of couch time. That search remains ongoing. As a good old Canadian boy, hockey is in Dave’s heart, as is curling sadly. But evolution is a real thing and that’s why football, baseball, and just about every sport on the planet has become a passion. Dave isn’t afraid to kill some time obsessing over politics or the far-too-frequent awards shows the consume the airwaves.