ESPN Bet is all systems go for New York launch

ESPN Bet is finally ready to roll out its offer in New York State with the state regulatory issuing the greenlight on Monday, multiple sources reported.

ESPN Bet readies to launch within days in New York

According to the New York State Gaming Commission (NYSGC), ESPN Bet has cleared all the necessary procedures to launch its offer into the Empire State, a bitterly contested market that has seen many companies fold their local operations.

ESPN Bet’s deep pockets have secured its market access at the cost of $25m, but how successful this gamble remains to be seen.

New York State has eye-watering exorbitant gambling tax levies, with companies asked to cough up 51% of their gross gaming revenue, which has significantly clipped the wings of small and mid-sized betting operators.

Many are loath to leave the market, because they fear they would help further reinforce FanDuel and DraftKings’ duopoly status in New York, with a ripple effect felt across the country. Yet, sustainability is a real issue that ESPN Bet will now have to face, too.

Jay Snowden, CEO of PENN Interactive, the company behind ESPN Bet, has been fairly confident about the company’s prospects for New York. Launching during the football season, and drawing from the ESPN brand recognition, the operator may reap a very strong first season.

Speaking to investors almost a month ago, Snowden suggested that the company would be launching in time for NCAAF’s first week, but the company has clearly missed this target. The football season is now also in swing, with several weeks having passed by, but plenty of action to go still.

PENN also confirmed in a statement through a spokesperson that the company is now preparing to launch within days, which means that the sportsbook should go live by the end of September.

ESPN Bet is determined to contest New York with all it has got

ESPN Bet has also made previous commitments to tread lightly when it comes to college sports in the first place, as a growing body of regulators and lawmakers has expressed concerns about student-athletes and college students seeing too much advertising from gambling companies, including ESPN Bet.

ESPN Bet will meanwhile be occupying an important spot – the vacuum left by the exit of Wynn Interactive, which became the latest operator to reckon with the high bar that makes New York very difficult to operate in, when it comes to profitability. The company first rolled out its offer in the United States in November last year.

ESPN Bet though is not only relying on its deep pockets, hoping to enter a highly contested market and start clawing market share out of established leaders. The ESPN editorial coverage and sports culture are certainly an advantage, but will it help move the needle in the company’s favor?

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