Penn Entertainment CEO and President Jay Snowden: “This was an opportunity of a century”
On Tuesday, the ESPN Bet app is expected to launch and begin taking wagers in the 17 states where mobile sports betting is legal in the U.S. It’s a significant moment in the rapidly growing sports betting market as ESPN becomes the first legacy media company to place its name directly on an online sportsbook.
The network is partnering with PENN Entertainment and, while the app will appear very ESPN-like in its branding and design, the product itself runs off of PENN’s proprietary in-house tech stack.
ESPN’s entry into the sports betting market presents a unique wrinkle as it will be able to deeply integrate betting products and services into its already popular ESPN App, social media channels, website, and linear television franchises.
“We’re seeking to reach sports fans, not just sports bettors,” Mike Morrison, VP, Sports Betting & Fantasy at ESPN said during a presentation at the ESPN Edge event in New York City last week. “In leaning into the ESPN brand; leaning into our ecosystem designing a special look and feel, this is going to be incredibly compelling to the marketplace.”
The ESPN Bet mobile application hits app stores on Tuesday. (Image courtesy of ESPN)
“Sports bettors in America today view sports betting as a major piece of the sports entertainment experience,” said Jay Snowden, CEO and President for PENN Entertainment. “‘I’m consuming sports on a Sunday. I love football. I’m going to watch basketball tonight.’ Having $5 on a parlay creates extra engagement. It’s a reason to stay up and watch the second half of the game.”
“This isn’t something that ESPN wants to do,” he continues. “This is something that ESPN has to do, because sports fans are demanding it.”
Users will be able presented with betting data throughout the ESPN App and be able to build bet slips there, as well. Once a user wishes to transact on those wagers, they are transferred over to the ESPN Bet app.
ESPN is partnering with PENN Entertainment. The ESPN Bet appilcation will run on PENN’s proprietary in-house tech stack.
Success in the online gaming market won’t come easy, however. Yes, ESPN comes to the fight as the top digital brand in all of sports media, but it is entering an online sports betting market that is dominated by the likes of DraftKings (31% market share), FanDuel (30%), BetMGM (16%), and others. (percentages according to NewYorkGambling.org)
ESPN is bullish on the prospect of “disrupting” the online sports betting industry and believes its integration with its flagship linear and digital products makes it a big differentiator from other players in the space.
“In this market ecosystem, between the sports betting app, the media platform, and the digital platform, the aim is to find that high level of connectivity that doesn’t exist anywhere in the market today,” says Morrison.
Users will be able to build bets slips off gaming activations in the ESPN App but will ultimately be moved over to the ESPN Bet app to transact on any wagers.
The early goals of ESPN Bet and its integration with the ESPN App are to offer something that sports fans find fun, engaging, but, most importantly, simple, seamless, and frictionless.
“How does sports media interface with sports betting?” asks Snowden. “How do you eliminate that friction so people who are checking on scores and reading those storylines and see that the Green Bay Packers over/under against the Vikings is 42 ½, can place that bet now. [They] can’t do it in ESPN’s app because it’s not licensed, but how do you do that on ESPN Bet and lean into that name ESPN Bet. We had to have alignment on the vision of eliminating friction for that sports fan.”
ESPN will also use the might of its entire portfolio to push the ESPN Bet product. Viewers can expect a heavy presence and branding across shows like SportsCenter, live game pregame and postgame shows, new talent, and much more. ESPN ‘s studio show Daily Wager has already been rebranded to ESPN Bet.
