ESPN Branding Helping ESPN Bet, Says YouGov
Penn Entertainment’s (NASDAQ: PENN) ESPN Bet mobile sportsbook launched a little over a year ago, and indications are beginning to show that the platform is gaining advantages from its association with the sports broadcast network.
A recent YouGov survey indicates that the Penn entity ranks as the fifth-largest sportsbook operator in the US, behind competitors DraftKings, FanDuel, BetMGM, and Caesars Sportsbook. However, YouGov points out that ESPN Bet is gaining advantages from its association with “the global leader in sports,” suggesting that potential customers with positive opinions of ESPN are more inclined to test the betting app.
"It is worth noting that this can work both ways. Among Americans with a strongly negative rating for ESPN, nearly 0% say they would consider ESPN BET. By comparison, 5% of this audience say they would consider DraftKings and FanDuel respectively,” according to YouGov. “Luckily for the brand, Americans with a strongly positive rating of ESPN number nearly double the share of Americans with a strongly negative rating for the media brand (23% vs 10%).”
The YouGov survey came out as signs grow that FanDuel and DraftKings continue to dominate the domestic online sports betting market, although there are also signs that Penn's business is advancing.
Penn Spent Heavily for ESPN Benefits
Indications that ESPN Bet is advancing may offer some comfort to cautious Penn investors, but they are likely to expect more than just gradual improvements, considering the regional casino operator invested a considerable amount for the rights to ESPN branding.
In August 2023, when the gaming company finalized its agreement with the sports network, it revealed plans to compensate ESPN $1.5 billion for a decade in exchange for using its brand, while also giving the media outlet rights to $500 million in equity warrants. Later, some investors would critique the decision, arguing that Penn paid too much.
Nevertheless, data suggest that ESPN Bet is attracting a younger audience compared to rivals like DraftKings and FanDuel, while also drawing in more female gamblers. YouGov indicated that 43% of ESPN Bet users fall within the 21 to 29 age range, while DraftKings and FanDuel have 30%.
“ESPN BET also has a slightly higher share of women in its user base, although the gap is nowhere near as big as that witnessed in the age breakdown of the audience. Just under a third of ESPN BET weekly users are women compared to 27% of DraftKings users and 28% of FanDuel users,” added the research firm.
ESPN Bet Establishing Distinct Market Segments
In the United States, football is by far the most bet upon sport, with basketball coming in second. This is reinforced by the reality that over half of DraftKings and FanDuel customers place their highest bets on one of those two sports, but ESPN Bet is forging a new path.
According to YouGov, 50% of ESPN Bet users consider basketball as their top betting sport, with soccer at 49% and eSports at 41%. Fewer than a third of DraftKings and FanDuel place soccer in that category, and roughly a fourth share a comparable interest in eSports. These data points might suggest that ESPN Bet is discovering a way to grow its market share without relying heavily on football.
“This variance underscores ESPN BET’s unique positioning, catering to non-traditional and emerging sports preferences while maintaining relevance in mainstream sports betting markets,” concluded YouGov.