Pennsylvania-based Penn Entertainment has secured access to the lucrative New York sports betting market through its acquisition of Wynn Interactive’s subsidiary, WSI US, LLC, for $25 million (£19.8 million/€23.3 million).
This move grants Penn access to Wynn Resorts’ mobile sports wagering licenses in New York, issued by the State Gaming Commission in 2021.
Pending regulatory approval, Penn plans to launch ESPN Bet in New York later this year, following its partnership with ESPN last August.
Jay Snowden, CEO of Penn Entertainment, emphasised the significance of this acquisition, stating, “This is an important development that will bring ESPN Bet to the largest regulated online sports wagering market in North America.”
The acquisition marks a further decline for Wynn Interactive in the US market, with the company previously withdrawing from eight states due to underperformance.
Wynn’s cessation of operations in Massachusetts, alongside the sale of its leading brand, WynnBet, underscores its shifting focus.
For ESPN Bet, the future appears promising.
With operations already spanning 17 states and pending entry into New York, ESPN’s venture into sports betting has been a subject of industry speculation for years.
Despite a significant net loss in Q3 2023, Penn’s strategic moves, including the sale of Barstool back to its founder, Dave Portnoy, for $1, have positioned it favourably in the market.
New York’s status as North America’s most lucrative state for sports betting is evident, with operators generating record-breaking revenue month after month.
Notably, FanDuel leads the market, posting a record $109.2 million in online betting revenue in January, surpassing the $100 million mark for the first time.
Wynn Interactive, however, lags behind in revenue, further indicating its diminishing presence in the market.
The state’s consistently high revenue figures underscore the immense potential for Penn’s ESPN Bet, with the acquisition paving the way for a significant foothold in this thriving market.