Sports betting and casino company PENN Entertainment, the operator of ESPN Bet, agreed to a $25 million deal to acquire the New York Sports betting license held by Wynn Resorts.
PENN Entertainment announced the agreement on Wednesday.
Back in late 2021, PENN Entertainment CEO Jay Snowden called New York “a margin killer,” according to Front Office Sports, due to its high operating costs, particularly a 51 percent tax on operators’ gross gaming revenues.
But now his company will use that license to bring ESPN Bet to the industry’s largest individual U.S. market later this year.
“I don’t think a single operator will make money in New York,” Snowden told analysts in 2021, when his company was still partnered with Barstool Sports, according to Front Office Sports. “So I’ve always struggled with that. Would you rather be in or not? I think objectively speaking, you’d rather be in than not be in. But it’s one of those states where if you’re not in, you’re not crushed by that either.”
However, Snowden said in a statement on Wednesday, “This is an important development that will bring ESPN BET to the largest regulated online sports wagering market in North America. Together with ESPN, we’re building a brand that is synonymous with sports betting, and operating in the New York market is key as we grow ESPN BET across the U.S.”
Last year, PENN Entertainment paid $2 billion to bring ESPN to legal sports betting and take on the likes of FanDuel and DraftKings.
Per Front Office Sports, New York concluded 2023 with $19.1 billion in total handle — up 18 percent from 2022 and almost 60 percent larger than New Jersey, the state with the second-highest handle. New York also raked in $1.7 billion in gross gaming revenue in 2023.
And in January 2024, the New York State Gaming Commission reported a $1.96 billion online sports betting handle, a rise from $1.78 billion in wagers placed in January 2023.
Also, New York’s January 2024 handle generated $211.5 million in gross gaming revenue, setting a new record. The previous mark was $188.3 million in revenue in December 2023.
–Field Level Media