ESPN BET will launch on November 14, PENN Entertainment announced on Thursday as it released its third-quarter earnings report. 

The rebranded app represents ESPN’s formal branded entry into the gambling space. It has been integrating sports betting content into its programming, social, and digital content since PASPA was overturned by the Supreme Court in 2018. 

PENN Entertainment operates the Barstool-branded sports book in 17 states. The switch to ESPN BET will be made simultaneously in each state where PENN operates a Barstool sports book on November 14, or as soon as possible thereafter pending regulatory approval. 

"This strategic alliance is expected to further expand our digital ecosystem and drive re-engagement with the millions of customers in our digital and retail databases, leading to compelling cross-sell opportunities," PENN CEO Jay Snowden said in a statement. 

PENN set to pay ESPN $150 million a year for 10 years to use Worldwide Leader’s name on its mobile sportsbooks, as well as grant ESPN $500M of warrants to purchase approximately 31.8M common shares of PENN. The deal has an out after three and seven years. 

Where Can You Use ESPN BET? 

The rebrand will have to be approved by regulators in the 17 states where it operates. Those are:

•          ESPN BET Pennsylvania

•          ESPN BET Michigan

•          ESPN BET Illinois

•          ESPN BET Indiana

•          ESPN BET Colorado

•          ESPN BET New Jersey

•          ESPN BET Virginia

•          ESPN BET Tennessee

•          ESPN BET Arizona

•          ESPN BET Iowa

•          ESPN BET West Virginia

•          ESPN BET Kansas

•          ESPN BET Maryland

•          ESPN BET Ohio

•          ESPN BET Massachusetts

•          ESPN BET Louisiana

•          ESPN BET Kentucky

In Massachusetts, the Massachusetts Gaming Commission will likely vote on PENN’s 57 pages of house rules for ESPN BET in a hearing next week to consider the full rebrand. 

PENN/Barstool never bothered to get licensed in New York because of the 50% tax on net revenues. So ESPN BET won’t be available in the Empire State, for now. 

PENN is not licensed (this includes ESPN's home state of Connecticut, where a license is up for grabs after BetRivers pulled out its partnership with the CT Lottery). 

What Happens To My Barstool Account?

All Barstool Sportsbook account details will roll over to your ESPN BET account, including  money you may have in your wallet. It is not known right now if people who are using the Barstool Sportsbook app can use sign-up codes on the ESPN BET app. Barstool Sportsbook users will be prompted to download the new ESPN BET app once available and use their Barstool Sportsbook credentials to access their accounts. Account details, pending wagers, and any balances will transition "seamlessly." 

Or so says ESPN BET.
 

Much At Stake For PENN, ESPN 

The move is big for both ESPN and PENN. Snowden hasn’t been shy about his expectations for the rebranded book. Barstool was unable to deliver the numbers PENN wanted in terms of market share when those companies joined forces back in 2020. 

PENN beat The Street in the third-quarter. The company reported a loss of $724.8 million, or $4.80 per share. But adjusted earnings were $1.21 per share. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 33 cents per share.

The company's stock was up 7.7% in pre-market trading on the news. 

PENN has fully divested itself of Barstool in August, selling the company back to founder Dave Portnoy for the princely sum of $1. Portnoy and his Barstool partners had received a total of $541 million from PENN for the company, before returning it for four quarters. 

The entry of ESPN BET into the North American regulated sports betting space has caught the attention of market leaders like DraftKings and FanDuel. 

DraftKings CEO Jason Robins dismissed the threat posed by ESPN BET and Fanatics in terms of both companies being able to leverage their viewers or customers into generating a major market shate.

“We’re in one of the most competitive markets in the world and anyone who thinks they will come in and just take over, that’s just foolish,” Robins said during the G2E summit at Las Vegas last month. “Many companies are coming into this space in a big way, ready to spend with big brands, a real vision, and good people. That’s not going to change."

ESPN BET Betting On ESPN's Brand Clout

ESPN BET VP of Gambling Mike Morrison said his book has something special: the clout of the ESPN brand. 

“How we're going to reference it, promote it, and integrate it under one brand, is really important. I think it serves the sports fans better to have a straightforward approach, and a unified approach,” Morrison told bookies.com. “And being able to utilize the ESPN brand around ESPN BET is incredibly important. 

The company boasts more than 200 million viewers/users over its linear and digital platforms. 

The connection to ESPN was evident in Thursday’s announcement of the November 14th launch date. 

“We are extremely excited to announce the planned launch of ESPN BET prior to the active Thanksgiving week sports calendar that includes the NCAA college football rivalry week and the Super Bowl rematch of the Kansas City Chiefs and the Philadelphia Eagles televised on ESPN’s Monday Night Football,” Snowden said in PENN’s quarterly report. 

ESPN BET product will include featured bets, quick bets (micro-markets), player props, same game parlays and the ability to share bet slips on social media without needing a screenshot. 

ESPN launched an advertising campaign headlined by SportsCenter anchors Scott Van Pelt and Elle Duncan this week. 

“Looking ahead, we will be introducing even deeper platform and media integrations with ESPN over the upcoming months, providing an unmatched and seamless media/betting experience that will appeal to sports fans across the country.”