In case you ve been living under a rock, PENN Entertainment has announced a new sportsbook, with plans to launch before Thanksgiving.
The excitement surrounding ESPN BET is palpable. The Worldwide Leader in Sports had been long rumored to get into the sports betting game, and that will soon be a reality.
ESPN wasn t the only company stirring up buzz over this deal. With Barstool Sports and founder Dave Portnoy splitting ways with PENN Entertainment, questions began to swirl surrounding the future of Barstool Sportsbook and PENN s platform in Canada, theScore Bet.
See what the future could hold for Barstool Sportsbook and theScore Bet following PENN s announcement of the .
Current PENN Platform Barstool Sportsbook to Be Rebranded
To put it into terms that Stoolies will appreciate, the Barstool Sportsbook is a sinking pirate ship. The only question is when it actually goes under.
Barstool Sportsbook is set to rebrand as ESPN BET following a split between PENN Entertainment and Barstool. PENN announced they d be going separate ways after Barstool Sports founder Dave Portnoy paid a total of $1 to reaqcuire the media giant he founded back in 2003.
The previous relationship between Barstool and PENN had been turbulent to say the least. Facing regulatory scrutiny in new markets and controversies that negatively impacted PENN stock prices, its clear that the split was in the best interest for both parties.
Wow .as part of Penn s new deal with ESPN to launch a sportsbook in the United States, they are selling 100% of Barstool Sports back to đ¤Ż
Joe Pompliano (@JoePompliano)
ESPN BET could look to launch in markets like New York, where questions surrounding Portnoy prevented Barstool Sportsbook from gaining crucial regulatory approval.
As per the deal, Barstool signed a âcertain non-competeâ clause, and PENN holds the rights to 50% of gross proceeds in any subsequent sale of Barstool Sports. While legal details haven t been specified, it s this non-compete clause that should ultimately result in the closure of Barstool Sportsbook.
In the mean time, PENN Entertainment plans on scrubbing all Barstool Sports personalities and IP from the current platform and continue to run until ESPN BET is ready to go.
When it comes to the casino side of the business, PENN Entertainment announced these offerings would be rebranded with the Hollywood Casino name. Numerous Barstool Sportsbook retail locations are currently operational within Hollywood Casino brick-and-mortar destinations, giving ESPN BET the chance to set up shop and serve sports bettors in-person if they choose to do so.
Timelines are unclear at this point, but one thing s for certain â Barstool Sportsbook will cease to exist once ESPN BET is up and running.
Canadian Sportsbook theScore Bet Will Continue to Operate
As for PENN Entertainment s Canadian offering theScore Bet, things are expected to stay the same.
Well known in the Ontario sports betting market, theScore Bet has established itself as one of the top sports betting apps in Canada s most populous province. It stands to reason that PENN Entertainment will allow theScore Bet to continue with business as usual despite the new ESPN relationship.
Cross-functional marketing opportunities between theScore Bet and ESPN personalities like Pat McAfee and Stephen A. Smith are certainly a possibility in the future. PENN previously tapped Barstool Sports personalities like Paul Biz Nasty Bissonnette to help market theScore Bet in Ontario.
After acquiring theScore Bet in 2021, PENN set out on a mission to bring a proprietary technology stack in-house for both theScore Bet and Barstool Sportsbook. This initiative was completed earlier this year, and despite moving on from the Barstool Sportsbook brand, PENN will likely continue to rely on this proprietary technology for the launch of ESPN BET.
PENN Plans to Launch ESPN BET Before Thanksgiving
News surrounding the launch of ESPN BET has started to develop since the initial announcement, with PENN Entertainment CEO Jay Snowden stating that the new sportsbook will go live certainly before Thanksgiving during a Q2 2023 earnings call.
Barstool Sportsbook is currently licensed to operate in 16 states, and ESPN BET will look to go live in these states pending regulatory approval. That may not happen all at once, as ESPN is likely to face similar regulatory scrutiny that Barstool Sports faced in states like Massachusetts.
The regulatory hurdles in Massachusetts alone are going to be insane to see unfold. You can bet the MGC will have a lot of questions about how ESPN and PENN will ensure responsible gaming practices are met through ESPN s expansive programming and social media platforms.
RLinnehanXL (@RLinnehanXl)
Additionally, PENN Entertainment has applied for a license in the market, which is set to go online for Sept. 28. ESPN BET isn t expected to launch until Nov. 2023, so the Bluegrass State could be part of a rolling launch for ESPN BET in the competitive US sports betting landscape.
With PENN Entertainment agreeing to pay ESPN $1.5 billion in cash over the next decade, plus grant ESPN $500 million in stock warrants totaling 31.8 million in shares, PENN Entertainment is obviously bullish on the potential of ESPN BET.
Once the expected regulatory hurdles have been cleared, PENN Entertainment will look to ESPN BET as they expand their presence, while relying on theScore Bet to handle sports bettors needs north of the border.
We re following this story very closely, so make sure you keep it locked in for the latest news and analysis surrounding the debut of ESPN BET.
