ESPN Branding Helping ESPN Bet, Says YouGov
Penn Entertainment’s (NASDAQ: PENN) ESPN Bet mobile sportsbook launched slightly more than a year ago, and indications are appearing that the platform is gaining from its association with the sports broadcasting 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 states that ESPN Bet is gaining from its association with "the global leader in sports," and that potential customers who have positive opinions of ESPN are probable to try the betting application.
"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 while there are increasing signs that FanDuel and DraftKings dominate the domestic online sports betting market, although there are also signs that the Penn business is advancing.
Penn Spent Heavily for ESPN Benefits
Indicators that ESPN Bet is advancing may provide some comfort to cautious Penn investors; however, they are likely to seek more than just gradual improvements since the regional casino operator invested a substantial amount to secure ESPN branding rights.
In August 2023, the gaming company finalized its agreement with the sports network, stating it would compensate ESPN $1.5 billion over a decade to utilize its name, while also giving the media company rights to $500 million in equity warrants. Certain investors would subsequently condemn the decision, asserting that Penn paid too much.
However, data shows that ESPN Bet is attracting a younger clientele compared to rivals like DraftKings and FanDuel, while also appealing to more female bettors. YouGov highlighted that 43% of ESPN Bet users fall within the 21 to 29 age range, in contrast to 30% for DraftKings and FanDuel.
“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 Distinctive Niches
In the US, football is by far the most bet-on sport, with basketball coming in second. This is reinforced by the reality that over fifty percent of DraftKings and FanDuel customers bet most heavily on one of those two sports, while ESPN Bet is pursuing an alternative path.
According to YouGov, 50% of ESPN Bet users consider basketball their top sport for betting, with soccer at 49% and eSports at 41%. Fewer than a third of DraftKings and FanDuel place soccer at that level, and around a quarter share a comparable interest in eSports. These data points may suggest that ESPN Bet is discovering a route to grow its market share without heavily relying 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.
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