Truist Managing Director Barry Jonas has revealed that Penn Entertainment is “actively working to buy” a New York mobile sports betting license for ESPN Bet. He made the comments in a Truist-hosted conference last week attended by 16 gaming operators.
ESPN Bet dominated the Truist recap on the Securities Gaming, Lodging, Leisure & Restaurant Summit. Jonas asserted that Penn executives believe getting into the NY mobile sports betting market is “imperative.”
Disney’s sports betting arm is trying to find a willing seller
As NY’s nine licenses are already taken, Jonas speculated that Disney’s sports betting arm is trying to find a willing seller. Industry analysts state a severely slimmed-down WynnBet seems the favorite to sell with the state’s 51% tax rate a constant drain on profits. WynnBet has already shuttered its online operations in the majority of states.
More revelations from the Truist MD included a note that Penn is pumping excess cash into ESPN Bet, which launched in 17 states on November 14. The cash injection comes as part of Penn’s mission to become the sportsbook of the mass-market bettor.
Jonas also observed Penn bracing for projected losses on ESPN Bet of $150m, stating it may only be 2025 before the brand turns a profit.