PENN Entertainment CEO Jay Snowden revealed on a Q2 earnings call on Thursday that the company will embed ESPN Bet wagering functionality in the traditional media apps of both ESPN and theScore across North America.
ESPN Bet will be “seamlessly” integrated into the ESPN app and the ESPN Fantasy app in the coming weeks. Bettors will be able to track bets, including all legs of a parlay, live within the media apps. The integrations will include personalized in-app betting offers as well as odds updates and wagering options.
At the company’s Q1 earnings call in May, Snowden said that theScore Bet‘s wagering experience would be integrated directly into the brand’s media app in Ontario. He added at that time that while the integration would only be introduced for theScore Bet in Ontario at first, the intention was to expand the feature to the U.S. for ESPN Bet “over the coming quarters.”
Snowden said the goal is to drive loyalty and engagement by allowing users to move “fluidly” through a seamless experience that conflates sports viewing and sports betting.
Joining Snowden on the call was Aaron LaBerge, PENN’s new chief technology officer who transitioned from the same role at Disney in June. Noting that ESPN had a digital and social reach of 181 million users last month, LaBerge said that the direct integration of betting functionality and sports score-tracking on ESPN’s platform will be “a huge competitive opportunity.”
“When you think about knowing the personalization, uses, preferences of all of those people and being able to target them… and then moving them seamlessly between the apps with no friction, it is a massive opportunity,” LaBerge said. “We know that no matter what betting app you’re on, you’re tracking the game on ESPN.”
ESPN Bet will revamp parlay offerings
PENN, like other operators, sees a slick and comprehensive parlay offering as crucial to what it wants to achieve.
Snowden and LaBerge said ESPN Bet will expand its parlay offerings by introducing numerous new or improved features in time for the start of the NFL season in a bid for that slate to serve as a differentiator in a crowded market.
“Our parlay offering is going to be significantly better at the start of football season than it’s ever been,” said Snowden, citing same-game parlays, data feeds and player props. “Without getting into too much detail, it’s going to be a significant improvement from what people experienced last year.”
Thanks to the integration of the betting functionality in the ESPN app, LaBerge said users will be able to track how their bet is performing across a multi-leg parlay all in one place.
“We’re now going to package that for you with no work,” he said. “It’s going to be like magic.”
ESPN Bet to launch in New York this month, but differently
As well as new product offerings, the remainder of 2024 will bring geographic expansion.
ESPN Bet will launch in New York this month before the first college football game of the new season on Aug. 24.
“We’ve tried to time it so that all of these feature enhancements that we’ve talked about would be live when we go live in New York so that [we make] a great first impression,” said Snowden.
Snowden added that PENN will take a different approach in New York vs. what it did when it launched across 17 states in the fourth quarter of last year. What that may mean in practice, such as a potential for less generous promotions and bonuses around the launch, will become apparent in due course.
Citing New York’s high tax rate of 51%, Snowden said PENN will be “very thoughtful” around customer acquisition in the Empire State. “We’ll really lean a lot more on the product improvements, the integrations, the connection that ESPN has with millions and millions of New York-based sports fans.”
PENN happy to ‘observe’ of DraftKings’ surcharge
A common theme over the last week in the slate of major operator earnings calls has been a question of what competitors think of DraftKings‘ decision to implement a surcharge on winning bets in some states.
Snowden, like other competitors’ leaders except for Rush Street Interactive’s Richard Schwartz, stressed that PENN will sit back and watch what unfolds.
“We find it to be very interesting,” he said. “It was unexpected but definitely interesting. You should expect us to be observers. It’s not even on our radar. I hesitate to say never but we’re really focused on continuing to improve the product…
“We would not be a first mover on something like that. We’ll observe it and see what the reaction is.”
‘Don’t believe everything you read’ on M&A talk
Finally, Snowden was asked to address the rumors that have swirled around PENN potentially selling off some of its assets. Will Wyatt, managing partner of PENN investor Donerail Group, wrote in a letter in May that “value could be realized” by selling some of its land-based casino properties, if not assessing the feasibility of a full sale.
Since then, reports have linked the likes of Boyd Gaming with an acquisition of PENN’s assets.
“Don’t believe everything you read,” Snowden said. “Just remember that our land-based assets are all part of different leases, so it’s not as simple as just selling off an asset. I don’t want to comment any further than that, because then you are commenting on something you said you’re not going to comment on.
Snowden did add that the company “always will evaluate opportunities to enhance value and take actions that we believe are in the best interest of our company and shareholders.”
