New York’s launch of ESPN BET had a setback due to their acquisition of Wynn Resorts Ltd.

Last month, Penn Entertainment floated the idea that the launch of ESPN BET in New York could happen by late August. However, Penn is now left waiting for the green light from regulators to be able to launch in the Empire State. Even with the optimism they had, Penn still mentioned this was “subject to regulatory approval” in a press release. So far, Penn hasn’t obtained any of the regulatory approvals needed to launch ESPN Bet in New York. The Empire State is home to the largest competitive market for legal sports betting in the United States. ESPN BET is missing out on millions in revenue with these delays. 

Penn Entertainment’s entry point into New York was through the acquisition of Wynn Resorts Ltd. They are a related entity in the market that holds an online sports betting license in New York. On Monday, a spokesperson for the New York State Gaming Commission (NYSGC) mentioned how the regulator’s board has not considered Penn’s application to acquire Wynn. Brad Malone, the director of communications for NYSGC believes this item will be discussed at a meeting scheduled for September 23. The board must approve Penn’s acquisition of Wynn before ESPN BET can fully launch in New York. 

What are the next steps for Penn to ensure they launch in New York as soon as possible?

In 2023, Penn agreed to pay $1.5 billion in cash over 10 years to ESPN for the exclusive right to the ESPN BET brand. Earlier this year, Penn CEO Jay Snowden mentioned how ESPN BET would enter North America’s largest regulated online sports wagering market. In February, Penn said they would launch ESPN BET in New York in 2024. Last month, Jay Snowden gave an update and said ESPN BET would launch in New York in late August. It’s now the second week of September and ESPN BET is still not live in the Empire State. Launching in late August would have been ideal for Penn as the 2024 NFL season is already under way. Week 2 starts this Thursday and there’s no sign of ESPN BET launching anytime soon. ESPN BET is available in 18 other states but they’re fighting to make an impact in those markets. Launching in New York could help increase their market and revenue totals.