ESPN BET loses $7.8 million on the PA launch as state promotional spending increases by 42%.

The Pennsylvania Gaming Control Board attributes a 75% yearly drop in sports betting revenue for November to ESPN BET launch citing heavy promotional spending.

Sportsbooks earned only $12.9 million down from $52.9 million in 2022. Bettors set a record with $934.1 million wagers. ESPN BET launched on Nov 14 incurred a $7.8 million loss in AGR outspending rivals.

DraftKings made $7.8 million, while FanDuel led with $8.4 million. Online casino revenue rose 21.9% YoY to $155.7 million offsetting the sports betting decline.

 

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The recent data from the Pennsylvania Gaming Control Board (PGCB) highlights a significant drop in sports betting revenue for the month of November. The board attributes this decline to the launch of ESPN BET and its heavy promotional spending. Sportsbooks in Pennsylvania earned just $12.9 million in November, marking a significant decrease from the $52.9 million earned in the same month last year.

Interestingly, despite the decline in revenue, bettors in Pennsylvania set a new record with $934.1 million in wagers. This suggests that the demand for sports betting remains strong within the state. However, the introduction of ESPN BET seems to have had a negative impact on the revenue generated by sportsbooks, as it incurred a loss of $7.8 million in AGR (Adjusted Gaming Revenue), outspending its rivals.

Among the other sportsbooks, DraftKings managed to make $7.8 million in revenue, while FanDuel led the pack with $8.4 million. These figures indicate that although ESPN BET struggled in terms of revenue, other operators were able to maintain or even increase their earnings.

On a positive note, the decline in sports betting revenue was mitigated to some extent by the rise in online casino revenue. Online casino revenue in Pennsylvania rose by 21.9% year-over-year, reaching $155.7 million. This increase helped to offset the downturn in sports betting, showcasing the growing popularity of online casino gaming.

Overall, while the launch of ESPN BET resulted in a considerable loss in sports betting revenue for Pennsylvania, other sportsbooks and the online casino sector managed to maintain or even improve their financial performance. It will be interesting to see how the market evolves in the coming months and whether ESPN BET can recover from its initial setback.