ESPN Bet Is Almost Gone, But Penn Is Making Sports Betting Strides

• Data indicate Penn Entertainment is making sports betting progress
• Company recently announced end of ESPN Bet partnership
• Experts see positives in Penn’s new direction

The once ballyhooed version of the ESPN Bet mobile sports wagering application operated by Penn Entertainment (NASDAQ: PENN) will cease existing on Dec. 1, but signs are emerging the gaming company is making progress in the online sports betting (OSB) space.

In a new report, Eilers & Krejcik Gaming (EKG) notes that key performance indicators (KPIs) for the recently commenced NBA season show ESPN Bet’s uptime increased 3.1%, adding the app leveraged improved internal pricing models to boost pricing independence. That’s relevant because Penn’s technology supports the app and that tech stack will carry over to theScore-focused offering, which is replacing ESPN Bet in the gaming company’s OSB stable.

Penn has been building out its data science team for several years now; while there may be some teething issues as kinks are worked out, long-term the switch should give Penn better economics and tighter control over the live product,” observes EKG.

While ESPN Bet branding will remain alive, and that the mobile application will be powered by DraftKings odds.

Penn Could Find Some Sports Betting Success

While Penn’s sports betting gaffes are well-documented, it appears to be righting that ship and it’s not walking away from the ESPN relationship emptied-handed.

“theScore has approximately 4 million monthly active users across North America, and PENN will retain a database of 2.9 million digital users acquired during the ESPN relationship (including 300,000 acquired this football season,” according to Truist Securities analyst Barry Jonas. “Further, PENN noted its iCasino business achieved its highest quarterly gaming revenue to date in Q3, driven by record cross-sell from online sports betting and growth from standalone apps.”

“Crucially, expectations and timelines have been reset: no more promises of 20% market share in five years,” says the research firm. “We believe Penn can deliver a solid sportsbook product that plays a sensible role within a profitable Interactive business.”

Penn Tech Progress Is Meaningful

At a time when technology is an increasingly prominent part of OSB operators’ success, Penn’s strides on that front should not be diminished and that progress could pay dividends when theScore Bet app rolls out in earnest.

“Despite the failure of ESPN Bet, there are positives for the new direction. Alongside the live betting performance, we’ve seen genuine strides on OSB product over the last two years,” concludes EKG.