Is ESPN Bet Getting Its Due?

By Matt Speakman,
Betting Expert at online-gambling.com

Matt Speakman Betting Expert at online-gambling.com

A die-hard fan of the Patriots, Matt Speakman is an expert on everything related to sports betting and DFS sites. Over the years, he has proven a valuable asset for our team at online-gambling.com. You can find Speakman's professional tips and tricks in any of his many articles on the website.

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Last updated: June 22, 2024

The investment bank Truist Securities recently shared an updated valuation of PENN Entertainment and its product, ESPN Bet. The valuation saw the share price increase by $2 per share to a total of $25 per share.

What is ESPN Bet?

ESPN Bet launched in late 2023 but has already become widely used across the US, resulting in early success for ESPN Bet. It is available in 17 states, including Colorado, New Jersey and Pennsylvania. The technology behind the betting platform allows users within the 17 legal operating states to place wagers when they are within state borders.

When outside of those borders, users still enjoy a considerable degree of convenience as they are allowed to check their balances, deposit or withdraw, and track transactions easily. The platform is currently available on mobile devices as well as on a dedicated website.

Though ESPN is still its own platform for all things sports news, ESPN Bet capitalizes on the success of the brand to offer a trusted betting platform to sports fans throughout the country.

PENN Entertainment, ESPN Bet’s Parent Company

PENN Entertainment, which used to be known by the name PENN National Gaming, is a company that owns many different properties mainly in the field of sports entertainment and gambling. Though ESPN Bet is just one of its dozens of brands, Truist’s note highlighted the property.

More specifically, the authors Barry Jonas, Ramin Robhany and Patrick Keough, used their expertise to share that ESPN Bet specifically deserves a higher valuation. They wrote that this was based on the integrations ESPN Bet offers, and the popularity of betting on football, which will of course pick up again in the fall.

Disney’s Dealings with ESPN Bet

Two of the features Truist remarked on were ESPN Bet’s parlay betting product and its Fantasy integration. The authors also made mention of Disney’s partnership with PENN Entertainment. This may leave some readers scratching their heads: What do Disney and gambling have to do with one another?

In fact, Disney has plans to expand into gambling and sports betting both with in-person casino sites as well as on its cruise ships. For these purposes, Disney completed a massive licensing deal with PENN Entertainment and ESPN Bet specifically, which will allow ESPN Bet products to be used in Disney locations.

This could add major value to the brand, Truist says. According to its latest statement, ESPN Bet could be recognized for its potential soon and is likely to be a high earner for PENN. Truist also changed its rating of PENN to “Buy,” as it is unlikely to lose value in the near future.

Though Truist uses various data points to provide its analysis, one of the ways it has come to these conclusions is through surveys of customers. Earlier this year, the bank conducted a survey on gaming and released its findings.

The survey revealed that 45-52% of ESPN Bet customers foresaw using the app as their go-to sportsbook.