By TheNuts - Jul 01, 2024
ESPN Bet Has 6% Market Share In US
After severing connections with its initial
wagering partner, Barstool Sports, Penn Interactive launched its ESPN Bet wagering platform on November 14. After opening in 17 states at first, ESPN Bet expanded to include North Carolina in March.
Gaining a sizable market share in online sports betting is the aim of the relaunched platform and cooperation with ESPN. In the US, DraftKings and FanDuel own around 80% of the market share for online betting.
ESPN Bet currently holds a 6% market share in the United States. In New York, where it was able to obtain a license following WynnBet's withdrawal from the state, it has not yet debuted. Later this year, Penn intends to introduce ESPN Bet into the most competitive US market.
Late in May, following a letter from the Donerail Group to the Penn board, acquisition speculations started circulating. The activist investor cited an 80% decline in Penn shares during the previous three years in the letter.
“The growing pattern of guidance misses, alongside a demonstrated unyielding appetite to continue to invest in the company’s fledgling interactive projects, irrespective of past results and without a clear return framework, has significantly damaged the credibility of this management team and board of directors,” reads the letter.
After a month, Truist Securities stated in a report that Penn stock is cheap and that its target price range is $23– $25. The last time Penn's share price was in that range was in February. Around the same time, Boyd Gaming reportedly made Penn an offer for an acquisition that was worth more than $9 billion, according to Reuters. Penn would probably not be interested, according to several investment banks' letters. They highlighted important obstacles in an agreement.
“The discussion provides several challenges, especially in several states that are currently dominated by Boyd and Penn properties,” said Bussmann, principal at Las Vegas-based BGlobal. “These include Louisiana, Indiana and Missouri, among others. It’s a little bit of a jigsaw puzzle to see what you want, what you may need to shed and find a potential suitor.”
Boyd Gaming is scheduled to report second-quarter profits on July 25. Penn and Flutter are scheduled to report on August 8 and 13, respectively. Some information about a deal might be found in the earnings reports. The Penn call will also show how ESPN Bet is doing in its attempt to increase its market share in
online gambling.