In most years, the introduction of a lone mainstream sports brand to the gambling market would create major ripples throughout the nation's sports betting ecosystem.
But what about two?
Last month, ESPN made a splashy debut in the U.S. sports betting market with the launch of the PENN Entertainment-operated ESPN BET. The rollout served as the most anticipated debut of a new sportsbook since the inaugural wave five years ago. But as year-end reviews trickle in during the holiday season, ESPN will have to share the headlines with another prominent mainstream brand.
In January, e-commerce giant Fanatics made its retail sports betting debut when the company opened a brick-and-mortar sportsbook inside FedEx Field, home of the NFL's Washington Commanders. Fanatics followed with soft launches of its online sportsbook in several states before announcing the acquisition of PointsBet's U.S. assets in May. To date, Fanatics Sportsbook is live in nine states, with more to come upon completion of the PointsBet deal.
An October survey of journalists by Hot Paper Lantern predicted that Fanatics, not ESPN BET, will be the brand that will wrest more market share from the Big Four when all is said and done. More precisely, approximately 65% of respondents chose Fanatics as the operator that will steal the most handle from DraftKings,'FanDuel,'BetMGM, and'Caesars. In offering additional color on the results, HPL CEO Ed Moed told, “It all comes back to how good the product is, how relevant, and how easy the product is. Fanatics clearly has the upper hand from the survey with how they're viewed.”
Nevertheless, ESPN BET bolted out of the gates with a strong debut. In November, bolstered by the launch’s tailwinds, a host of top gaming states reported record monthly sports betting handle. From early indications, there are signs that ESPN is bringing new female and recreational bettors into the market .
Last month, ESPN BET maintained a handle market share in the high single digits in several key states, most notably Massachusetts, where it outperformed BetMGM and Caesars. The robust figures prompted analysts from BofA Global Research to upwardly revise its long-term projections for the venture. BofA now predicts a run-rate market share of 10% for ESPN BET, up from previous expectations of 6-7%. (In financial parlance, a company’s run rate is a predictor of future performance under the assumption that current financial conditions will persist.)
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By the end of 2027, PENN Entertainment CEO Jay Snowden is optimistic that ESPN BET will command a market share of 20% or more nationwide. An influential venture capitalist, Seventy Six Capital Managing Director Wayne Kimmel, predicts that the operator will eventually become the country’s top sportsbook. Neither Snowden nor Kimmel have a crystal ball, however. Only time will tell.
As we close the door on 2023, the widespread changes to the U.S. sports betting market should have lasting effects. This year, brands such as FOX BET, WynnBET, PointsBet, and Unibet either downsized operations or announced plans to leave the U.S. market altogether. In their place, the emergence of ESPN BET and Fanatics heads our list as the top business story of 2023.
Here's a month-by-month'look at the other top business stories of the year.
Market Research Shows Wagering Little Affected Despite Inflation
Ex-Jags Employee Facing Up To 30 Years In Prison For Stealing $22M To Fund Gambling
Massachusetts: DraftKings Broke State Law In Accepting Out-Of-State Credit Card Funds
Cuban-Adelson Transaction Could Hold Implications Far Beyond NBA
The multi-billion dollar question: Will the sale of the Dallas Mavericks increase the possibility for a mega Texas casino resort? @MattRybaltowski explores from all angles:https://t.co/DHUqfZZ7gE
— Sports Handle (@sports_handle) December 7, 2023
Ex-Jags Employee Facing Up To 30 Years In Prison For Stealing $22M To Fund Gambling
Massachusetts: DraftKings Broke State Law In Accepting Out-Of-State Credit Card Funds
ESPN BET's First Month In Line With Analysts' Estimates, Preliminary Data Shows
Resignation Of Entain CEO May Reignite Calls For BetMGM Divorce
MGM Resorts Unveils Plans For Would-Be New York Casino
Is this an appropriate place to watch Monday Night Football in December? pic.twitter.com/MjlJI1ITuY
— Las Vegas Locally ?? (@LasVegasLocally) December 19, 2023
Unibet To Exit North American Sports Wagering Marketplace
F1 Crisis In Vegas Averted As MGM Reaches Agreement With Employee Union'
ESPN BET's Highly Anticipated Launch Arrives, New Sportsbook Officially Live
The Billion Dollar Question: How Will ESPN BET Differentiate Itself From Main Rivals?'
Questions surround whether ESPN BET can emerge as a Top 3 operator over the next three years. Given PENN's investment, they can aptly be described as billion-dollar questions, writes @MattRybaltowski. (Click pic for story)https://t.co/3FfUj3Mbfp
— Sports Handle (@sports_handle) November 14, 2023
Hard Rock Bet Surprises By Restarting On Limited Basis In Florida
Ed Miller: 'Gambling Is About Finding People Who Are Willing To Lose To You’
Wisconsin Teen Pleads Guilty To Conspiracy In Sports Betting Hacking Case
DraftKings Announces 'Progressive Parlay' Feature Coming Soon To Online Sportsbook
PPA Tour Looks To Ride Momentum Of Pickleball Betting Launch Into 2024
DraftKings Takes Victory Lap, Vows To Remain 'Disciplined' Amid ESPN BET Launch'
Despite Robust Growth, Sportradar Unveils Plans To Reduce Workforce By 10%
Bally's Gets 1-Year Extension To Operate Temporary Casino In Chicago
Football And Finances: Some Would Go Into Debt For A Home Team Super Bowl Win
Does House Money Or Skill Keep Sports Bettors Coming Back For More?
Travis Kelce Prop Betting Explodes As Taylor Swift Cheers Him On Again
“The excitement we're seeing for Travis and Taylor has continued to translate to increasing popularity for Kelce-related bets.”
– Karol Corcoran, @FDSportsbook (@mdseely, #TaylorSwift, #taylorandtravis)https://t.co/NrSh5SdHeA
— Sports Handle (@sports_handle) October 2, 2023
Sportsbooks Are Beginning To Get The Hang Of Microbetting'
Radar Offers Wagering Operators A Geofencing Alternative
U.S. Gambling Is A $328 Billion Business, According To The American Gaming Association
Media Notebook: The Rise Of The Gambling Industry Newsletter
Sportradar, Genius Sports Hit With Patent Infringement Suits Over Streaming Products'
Younger Bettors Have More Diverse Wagering Habits Than Older Counterparts'
Nevada Rep Lauds NFL For Revamped Sports Betting Policy, But Questions Remain
Hard Rock Bet May Be The Quickest And Cleanest Sportsbook App Out There
Caesars Nears Launch Of FireBets Product To Capture Momentum Shifts In Sports Betting
NFL, Genius Sports Unveil Stream & Bet Platform Through BetVision
Will Prohibet Provide One-Stop Shopping For Detection Of Sports Betting Infractions?
“To me, it's the missing link in the proverbial force field of the legalized sports betting market – to cover that integrity piece that quite frankly was completely void, or at least woefully insufficient.”
– Matt Heap, @USintegrity (@MattRybaltowski)https://t.co/Kmz9COqrs5
— Sports Handle (@sports_handle) September 14, 2023
College Fraternity Partners With Mental Health Provider To Curb Problem Gambling
Sportsbooks Ratchet Up Targeted Advertising At Start Of NFL Season'
Sportsbook Operators To Massachusetts: Data Privacy Regs Must Be Modified'
I Want You To Quant Me: High-Tech Startups Aspire To Help Bettors Beat The Books
Report: D.C. Lottery Limits Retail Wagers After Restaurant Bettor Wins Big'
DraftKings Posts, Then Removes, Parlay Tied To 9/11 Terrorist Attacks'
Roundhill To Modify Underlying Index For Sports Betting And iGaming Fund'
BetMGM's Enhanced App Delivers Several Notable Product Improvements'
What Do Stuffy Noses Have To Do With Responsible Gambling?'
Prime Sportsbook Set To Kick Off In Ohio, Welcomes All Comers'
GeoComply Reports 242 Million NFL Week 1 Betting Transactions, Up 56% Over Last Year'
More Than 60% In Survey Say They Place Live Wagers On NFL Games'
Ontario Rolls Out More Stringent Wagering Advertising Rules'
NASCAR Re-ups With Sportradar, Signs Deal With Microbetting Platform nVenue'
Sporttrade Launches In Colorado As Upstart Novig Pursues License'
U.S. Rep. Tonko: Speedy Passage Of Sports Betting Ad Ban Bill Unlikely
Deeply disturbing that sportsbooks pushed to reject language that would protect young people and problem gamblers in our state.
It's also the reason why I introduced my Betting on Our Future Act-to end the barrage of sports betting ads & their harm to our most vulnerable. https://t.co/dyd9KS8vfB
— Paul Tonko (@RepPaulTonko) December 11, 2023
Yahoo Sportsbook Opens Up At The Venetian Resort Las Vegas'
U.S. Commercial Sports Wagering Handle Surpasses $250 Billion Post-PASPA
Rivalry Brings Same-Game Parlays To Esports Betting'
Industry Insiders: Dave Portnoy One Of The Biggest Winners In Post-PASPA Era'
Wynn Resorts Plans To Close WynnBET In Eight States'
Flutter Anticipates Stiff Competition From ESPN BET, Is On Track For U.S. Listing'
MGM Resorts Pleased With BetMGM's Path To Profitability'
Flutter, Fox Corp. Winding Down FOX Bet Amid Low Market Share'
NFL, Genius Sports Extend Sports Betting Data Partnership Through 2027-28 Season
Aristocrat Unveils First NFL-Themed And Branded Slot Machine'
Feeling lucky during the football season? @NFL-themed slot machines are hitting the casino floors starting this September. @contessabrewer joins with more: pic.twitter.com/cPrL2RHtpM
— Squawk Box (@SquawkCNBC) July 28, 2023
NJ DGE Shuts Down PlayUp As Aussie Book Struggles To Remain Afloat In U.S.
Betr Launches Pick-'Em-Style Fantasy Vertical''