Winners & Losers of ESPN BET Announcement: Did PENN or Disney Win the Day?
- PENN Entertainment announced the rebranding of Barstool Sportsbook to ESPN BET
- The deal being touted as a “win-win” for all parties will also have negative impacts for some
- See the winners and losers from the announcement of ESPN BET, which is set to launch in November
In a bold strategic move that has sent shockwaves through the sports betting industry, PENN Entertainment will rebrand its biggest sports betting platform, Barstool Sportsbook, to the newly minted ESPN BET.
This massive transition has resulted in an eclectic range of winners and losers, as the dynamics of the legal US sports betting landscape continue to evolve. New sports bettors who sign-up using an ESPN Bet promotional code will be able to claim a welcome bonus.
While this announcement seems to be a massive win for the three big corporations involved in the transaction, the ripple effect will be felt well beyond the offices of PENN, Disney (ESPN), and Barstool Sports.
The deal largely being touted as a “win-win” for all parties doesn’t come without its fair share of losers. See who came up big, and who feels left out, after PENN announced the planned launch of ESPN BET for 2023.
ESPN BET Announcement Winners
When it comes to winners in this deal, there are at least four parties who are coming up on the right side of this deal.
That includes Bob Iger and Disney, PENN Entertainment, Barstool Sports, and Pat McAffee. Here’s why.
Bob Iger and Disney
One of the biggest winners in this rebranding is none other than Bob Iger and his media conglomerate, The Walt Disney Company. Through the acquisition of ESPN in 1996, Disney has made a calculated move into the world of sports media, and now they’ll look to drive profits from the lucrative legalized sports betting scene.
With the rebranding of Barstool Sportsbook to ESPN BET, Disney is poised to rake in millions of dollars as sports enthusiasts flock to place wagers on their favorite games, leveraging the powerful ESPN brand.
Disney CEO Bob Iger briefly references the deal with PENN Entertainment for ESPN BET.
"This licensing deal will offer a compelling new experience for sports fans. We’re excited to offer this for the many fans who have asked for it."
— RLinnehanXL (@RLinnehanXl) August 9, 2023
Branded as The Worldwide Leader in Sports, ESPN will plaster advertisements for their new sportsbook across their broadcasts, bringing them massive brand visibility in a highly competitive field.
While Disney CEO Bob Iger is facing public outcry over the Hollywood writers and actors strike that has now entered its 100th day, its undeniable the Mickey Mouse head honcho will benefit from this landmark deal.
PENN Entertainment
PENN Entertainment’s decision to distance itself from the controversies associated with Barstool Sports could prove to be a winning strategy. By aligning its sports betting platform with a reputable and no-nonsense brand like ESPN, the company is likely to gain increased credibility among a broader audience.
This rebranding could lead to a boost in user engagement and customer trust, ultimately driving higher revenues from eager sports bettors.
Backed by a mature audience with money to burn, PENN should see higher long term value from bettors on ESPN BET compared to the Barstool Sportsbook, which was largely supported by young “Stoolies” with little disposable income.
Barstool Sports, Stoolies, and Dave Portnoy
Longtime fans of Barstool Sports are celebrating as they regain access to the unfiltered and irreverent content they’ve come to love.
The rebranding has brought back the genuine Barstool experience, which resonates with its dedicated fanbase, affectionately known as “Stoolies.” Furthermore, Barstool’s founder, Dave Portnoy, is undoubtedly a winner in this scenario, having managed to buy back his own company for a mere $1.
This remarkable turn of events marks a significant victory for Portnoy and Barstool Sports who can refocus on what Stoolies love most – unfiltered content.
Pat McAffee
Adding to the roster of winners is Pat McAfee, who, after a successful four-year/$120 million contract with FanDuel Sportsbook, has recently joined ESPN on a five-year/$85 million deal.
McAffee’s move to ESPN was met with notable criticism from his fans, who questioned the decision to move to a media giant like ESPN where his typically unfiltered takes could be met with corporate scrutiny. Either way, McAffee stands to benefit from this massive partnership between PENN and his new employer.
Who Are the Losers?
As for the losers, there are at least three conglomerates who will feel like they’re coming out on the short end of the deal here.
Sports fans uninterested in betting, DraftKings shareholders, and new sports betting operators like Fanatics Sportsbook could take the biggest hits moving forward.
General Sports Fans Uninterested in Betting
While the rebranding may cater to the betting community, it could prove to be a nuisance for general sports enthusiasts who have little interest in betting. The integration of ESPN BET ads during various games might detract from their viewing experience, leaving them bombarded with content that holds no appeal.
ESPN has entered an agreement with @PENNEntertain to launch ESPN BET, a branded sportsbook in the U.S.
ESPN BET will be available for fans this fall
Details: https://t.co/evaUbfn5Nh pic.twitter.com/UqIkME4Lyk
— ESPN PR (@ESPNPR) August 8, 2023
Many fans have already expressed their annoyance with the sheer volume of sports betting advertisements, and with PENN and ESPN inking a 10-year agreement, that won’t be slowing down for the next decade plus.
DraftKings Shareholders
The emergence of ESPN BET as a major player in the sports betting market could have a negative impact on DraftKings shareholders. The increased competition and brand recognition associated with ESPN could potentially eat into DraftKings’ market share and revenue.
Shareholders may face challenges as they navigate this newly intensified competitive landscape. The DraftKings share price fell 10% following the news, and investors could continue to see declines if ESPN BET meets its full potential.
The news is particularly sour for DraftKings shareholders who were holding their breath on a rumored agreement with ESPN. Those hopes have been dashed with this sudden news.
New Sports Betting Operators
The launch of ESPN BET introduces a formidable competitor to the arena of sports betting. Newcomers to the market, such as Fanatics Sportsbook, may find themselves facing an uphill battle against the established ESPN brand.
The aggressive entry of ESPN BET could limit the growth potential and market share of these new entrants, making it more challenging for them to gain a foothold in the industry.
With FanDuel and DraftKings already dominating over 50% of the sports betting market share, emerging sportsbooks are looking at another massive competitor in a cutthroat industry. ESPN BET is expected to launch in November before Thanksgiving.
A sports fanatic and strategic wordsmith, Mitchell has been writing gaming content for over seven years. As sports betting emerges in markets across the globe, he’s ready to journey alongside those who haven’t wagered before with informative articles and comprehensive how-to guides.
