The acquisition by Penn gives them market access in New York state. As part of the deal, Penn will acquire Wynn Resorts subsidiary Wynn Interactive’s mobile sports wagering licences entity, WSI US, LLC, for $25m (£19.8m/€23.3m). This acquisition will allow Penn to launch ESPN Bet in New York later this year. Penn partnered with ESPN in August last year, rebranding their Barstool Sportsbook as ESPN Bet and launching it in 17 US states in November. Jay Snowden, CEO and president of Penn Entertainment, said this acquisition will expose ESPN Bet to the largest regulated online sports wagering market in North America.
This acquisition marks a decline for Wynn Interactive in the US. Last year, Wynn Resorts announced that its interactive division was underperforming, leading to its withdrawal from eight states. Now, ESPN Bet, one of the biggest contenders in the US sports betting market, will take over in New York. Wynn Interactive has also recently ceased operating WynnBet in Massachusetts.
Despite a net loss in Q3 2023, Penn’s acquisition of Barstool has paid off, especially with the success of ESPN Bet. Mike Morrison, vice president of sports betting at ESPN, confirmed that Penn will control all market access deals and negotiations for ESPN Bet.
New York is the most profitable state for sports betting in North America. In January 2024, operators generated $211.5m in revenue, breaking records for the third consecutive month. Current brands active in the New York market include FanDuel, DraftKings, Bally Bet, BetMGM, Caesars Sportsbook, Fanatics Sportsbook, Resorts World Bet, and BetRivers. FanDuel remains the leader, with the highest online betting revenue in January.
Wynn Interactive ranks last in terms of revenue in New York, with only $358,497 in revenue off an $8.8m total spend.
