As the launch of online sports betting in Missouri draws closer, PENN Entertainment executives are hard at work planning for ESPN Bet’s entry into the market.
PENN has applied for a tethered license in the Show-Me State and will utilize its Missouri brick-and-mortar casinos to offer both online wagering and retail sports betting. The consitutional amendment that legalized sports betting in Missouri last year allows existing casinos in the state to partner with mobile sportsbooks to offer statewide digital betting. As existing casino operator in the state, PENN has a clear path to launching ESPN Bet through a property it aleady runs.
PENN will utilize all three MO casino properties
“We have three casino properties, and we’ll be prepared at launch in December to launch not only our digital product, but we will have ESPN retail offerings at our three facilities,” PENN VP of Operations Jason Birney told SBC Americas. “We have two in the St. Louis market and one in the Kansas City market, which is advantageous. There’s no secret that we have a nice footprint in Missouri.”
PENN operates a Hollywood Casino & Hotel location and River City Casino Hotel in St. Louis, as well as Argosy Casino & Hotel in Kansas City near the Kansas border. The company posted job listings for sportsbook managers at the two St. Louis locations in recent weeks.
While numerous sportsbooks have announced their market access partners for Missouri, PENN is one of a small few that have confirmed plans to launch retail sports betting in addition to statewide online wagering. Bet365 will operate a retail book near Busch Stadium, the home of its market access partner the St. Louis Cardinals, and Fanatics confirmed it plans to launch retail betting at Ameristar casinos in Kansas City and St. Charles via its newly announced deal with Boyd Gaming.
Chief Financial Officer Felicia Kantor Hendrix said on an earnings call this month that PENN’s updated guidance accounts for $10 million of incremental costs related to the Missouri launch, which is set to be Dec. 1.
Alberta launch also in pipeline for PENN
Missouri is one of two new online sports betting markets that Birney and PENN have their eyes on. Alberta is due to become Canada’s second regulated online gambling province early next year, and Birney reiterated to SBC Americas that PENN intends to be ready to go with its Canadian-facing theScore Bet and its new standalone theScore Casino app when those doors open.
“We’re very excited for Alberta’s launch,” Birney added. “We’ll be ready at launch and, unlike Ontario, we’ll simultaneously have casino launched at the same time. We’re extremely excited for Alberta and ready to go.”
Missouri picture continues to take shape
The confirmation of PENN’s plans for ESPN Bet in Missouri is the latest brushstroke adding colour to the outline of the market.
We already know that two very different sportsbooks by size and operation, DraftKings and Circa Sports, have been awarded the two untethered licenses and do not need to partner with a retail casino or pro sports team.
Circa beat out DraftKings’ fellow giant FanDuel for a direct license, and FanDuel subsequently announced a market access deal with Major League Soccer team St. Louis CITY. As well as bet365’s deal with the Cardinals and Fanatics’ hook-up with Boyd, BetMGM has confirmed Century Casinos as its Missouri partner. Underdog has also applied for a license but has not revealed its partner.
Bally’s and Caesars are other Missouri casino operators with an in-house mobile sportsbook brand, although Caesars campaigned against the proposal to legalize online sports betting. Meanwhile, the likes of BetRivers and Hard Rock Bet have no existing presence in the state. While the Cardinals and St. Louis CITY are now taken, major Missouri sports teams including the Kansas City Chiefs and Royals and the St. Louis Blues have not yet announced sportsbook partners.
