ESPN Chairman Pitaro Bullish on Relationship with Penn
Posted on: May 22, 2025, 03:38h.
Last updated on: May 22, 2025, 03:38h.
- Comments come as ESPN Bet faces investor scrutiny
- Says ESPN feels positive about relationship with Penn
ESPN Chairman Jimmy Pitaro is constructive on the network’s relationship with Penn Entertainment (NASDAQ: PENN), but acknowledges the ESPN Bet platform needs to gain more market share.
In comments recently made on the Puck News Grill Room podcast, Pitaro said ESPN Bet, which has been a point of emphasis in investor attacks against Penn, is still in its infancy, but it’s growing and there are reasons for optimism.
We are in the first inning here with betting,” said Pitaro in the interview. “We feel very good about our partnership with PENN, but we are just getting started here. ESPN BET is growing, and we are working very hard with them on an aggressive growth plan.”
Some investors, including HG Vora — the hedge fund waging a proxy war against Penn — are likely to contest Pitaro’s assertions. In a presentation published yesterday, Vora said Penn continues pushing out the timeline for profitability at its digital business, adding that ESPN Bet has just 2% market share and that Penn’s digital unit has shed monthly active users since the August 2023 announcement of a partnership with the “worldwide leader in sports.”
Pitaro Remarks Arrive Amid Concerns About ESPN Bet Fate
As part of the 10-year, $2 billion deal between Penn and ESPN parent Walt Disney (NYSE: DIS), both sides have an opt-out clause from ESPN Bet after the third year, which is August 2026.
That point was mentioned by Penn CEO Jay Snowden on the operator’s fourth-quarter earnings conference call in February, sparking concern ESPN Bet is on borrowed time. Some analysts have speculated that Penn could eventually decide to throw in the towel on ESPN Bet and jettison theScore as avenues for generating shareholder value and refocusing on brick-and-mortar casinos.
Such moves don’t appear likely over the near-term, but Pitaro acknowledges ESPN Bet has work to do when it comes to mounting a more competitive threat against the leaders in the online sports betting industry — namely DraftKings and FanDuel.
“We are focused on building market share, we absolutely need to build market share,” he said on the podcast. “There are leaders in this space right now that are doing a fantastic job with their product, and they have been leading the industry for a long time now, and our focus is getting closer to them.”
ESPN Bet Banking on Integration, Tech
ESPN Bet has the benefit of enviable branding, but in order to better capitalize on the association with the world’s largest sports network, integration between ESPN and the gaming platform needs to improve. Steps in that direction were taken last month the launch of “Mint Club,” which allows customers to connect their betting accounts to accounts on ESPN.com.
Pitaro said further integration and technological pushes could allow Penn to deliver bespoke betting options to clients, which could assist in the quest to build market share.
“One of the ways we think we’ll be able to do that is through our upcoming ESPN app enhancements, where you will see betting much more deeply integrated into the experience, including the live game experience,” the ESPN chairman told Puck News.
Last Comments ( 1 )
Branding? $200 million a year for 2% market share? Penn is being fleeced.