On an idyllic fall evening on Manhattan's famed South Street Seaport, ESPN Chairman Jimmy Pitaro delivered the introductory comments at last week's ESPN Edge technology conference.
Pitaro addressed a packed audience Thursday as rays of sunlight bouncing off the East River illuminated the stage of an expansive conference hall. ESPN is at a crossroads of sorts, as Disney explores strategic plans to roll out a standalone streaming platform of the sports network. But any plans for a direct-to-consumer network took a back seat to ESPN's highly anticipated launch with partner PENN Entertainment of its sports betting brand, a new division that has been in the works for months.
Pitaro was bullish about Tuesday's launch of ESPN BET, using opening comments to tout the network's foray into the U.S. sports betting ecosystem. ESPN BET goes live less than a week before the Kansas City Chiefs host the Philadelphia Eagles on ESPN's , in a juicy rematch of Super Bowl LVII. The debut formally marks the start of a lucrative 10-year partnership between ESPN and PENN, which is powering the sports betting platform for which the gaming company’s interactive division sets all the odds.
The New York audience also heard from PENN CEO Jay Snowden, who described the partnership as the “opportunity of a century” for his company. From his first meeting with Pitaro, Snowden said it became clear that a comprehensive sports betting brand had become a necessity for the network. By the end of their 90-minute meeting in Bristol, Connecticut, the two had become so aligned on their vision for ESPN BET that they started finishing each other’s sentences, Snowden told the ESPN Edge audience.
Both sides are focused on creating a seamless, frictionless experience for bettors. Despite the fanfare, questions surround whether ESPN BET can emerge as a Top 3 operator over the next three years. Given PENN’s investment — $1.5 billion over the next 10 years for the rights to ESPN’s brand in operating the sportsbook platform —' they can aptly be described as billion-dollar questions.
While an opt-out is available after three years, the partnership will be worth closer to $2 billion if the accord lasts for the entirety of the contract. ESPN’s cachet as one of the world’s most recognizable sports brands is a main reason why PENN essentially swapped Barstool Sportsbook for ESPN BET in this summer’s transformative deal.
Integrations, integrations … and integrations
Anyone who has followed the partnership between PENN and ESPN since the August announcement has become accustomed to hearing the phrase “integration” frequently. While the term is a buzz word used by MBAs, you don’t need a Ph.D. from the Harvard Business School to understand the intent. Think of an integration simply as a way to combine various aspects of a company’s organization to produce greater efficiencies within the business.
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When it comes to implementing ESPN BET into the fabric of ESPN, there will be media integrations, broadcast integrations, app integrations, marketing integrations, fantasy sports integrations, and much, much more. Networks already post in-game odds as an engagement tool for viewers, and the Worldwide Leader in Sports can now promote the odds of ESPN BET.
ESPN BET is coming soon!
Excited to share our new teaser spot with ESPN's Scott Van Pelt. https://t.co/K038YKAdDF
— PENNEntertainment (@PENNEntertain) November 1, 2023
On Christmas Day, the Denver Nuggets will face the Golden State Warriors in a matchup of the last two NBA champs. Let’s say Steph Curry has four 3-pointers at the end of the third quarter. In between quarters, ESPN has the ability to create an on-screen graphic of Curry’s odds of hitting the over on various props. The graphic might tempt a viewer to bet on whether Curry will hit one more 3-point shot or go on a heater and drain four more.
The cross-pollination efforts to promote ESPN BET may continue as the NBA broadcasts lead into , hosted by betting enthusiast Scott Van Pelt. The longtime anchor is a favorite among gamblers for his “Bad Beats” segment. ESPN BET will be able to lean into his popularity and that of other personalities at ESPN, which garners about 117 million unique visitors a month. That amount outranks Barstool Sports, PENN’s now-abandoned partner, by about 15-fold.
Snowden noted that PENN plans to work with Van Pelt and other ESPN personalities to offer their picks of the day. If former Colts punter Pat McAfee is playing a same-game parlay, ESPN BET can promote McAfee’s “Parlay of the Day.”
From among customers downloading the new app, ESPN BET already plans to invite several winners of a random drawing to Bristol for a VIP tour of the ESPN studios.
Wayne Kimmel, a prominent venture capitalist, predicts that ESPN BET will eventually surge to No. 1 in the market. ESPN, according to Kimmel, is in a unique position where it could offer incentives such as inviting VIP bettors to watch the CFP national title game from the sidelines with McAfee. That would be the type of advantage competitors can’t match, though it remains to be seen whether such offers will exist.