PENN Entertainment, the parent company of ESPN Bet and theScore Bet, released its second quarter 2024 earnings presentation
For North Carolina, most important information revolved around a revamped ESPN Bet mobile app and PENN Entertainment’s plans leading up to football season.
Also, many who participate in the North Carolina sports betting market are interested in whether ESPN Bet, like DraftKings, will introduce a betting surcharge on winnings. CEO Jay Snowden gave his response.
PENN refreshes ESPN Bet, integrates sportsbook into ESPN’s digital products
Right now, PENN Entertainment only operates a mobile sportsbook in North Carolina.
PENN is investing further in the mobile app to improve the interface for users in North Carolina and beyond. The goal is to roll out these updates ahead of football season.
ESPN Bet North Carolina can expect some user experience upgrades.
Some of those include refreshing the following:
– Home page improvements.
– Parlay carousel functionality.
– Dark Mode.
– Parlay+ being rebranded to Same Game Parlay (SGP).
As well, PENN plans to include the following new features/functionalities:
– A referral program.
– Early win payouts.
– ESPN Bet integration with theScore Media app, including “add to betslip” functionality.
Product enhancements directly related to the upcoming football season include profit boosts, a parlay lounge, and more same-game parlay options. These options will drive revenue for PENN by boosting operator hold through increased parlay action from users. They also increase ease of access across the betting side of the app and its ESPN media content.
Beyond football season, PENN Entertainment also plans to grow its mobile sportsbooks by better integrating with ESPN’s other digital products. Targeted offers will be sent to those who use ESPN’s Fantasy App. Also expect a greater emphasis on showing betting lines to users.
The home page of ESPN’s mobile app will better incorporate ESPN Bet, and a dedicated odds tab will be added.
If anyone in North Carolina or elsewhere use any of ESPN’s digital properties, expect to see a lot more betting content soon.
Could PENN Entertainment add a sports betting surcharge like DraftKings?
The other hot topic was the possibility of PENN Entertainment and its sportsbooks potentially adding a surcharge on winnings to make up for any increased tax rates in certain markets.
PENN CEO and President Jay Snowden explained his current thought process on a winnings surcharge.
“[DraftKings’ decision to implement a surcharge] was unexpected from our perspective, but definitely interesting. When you think about PENN’s view on this, you should expect us to be observers. We have a lot going on in front of us right now over the coming quarter. So, I would say when you’re talking about a potential tax surcharge in early 2025, that’s not even on our radar. I hesitate to never say never, but it just means that we’re really focused on continuing to improve the products, continuing to drive top of funnel and loyalty and retention. And so, we would not be a first mover on something like that. We’re going to stay very close to it. We’ll observe, we’ll see what the reaction is assuming that it does launch in early ‘25. And then we’ll probably have more to share with all of you on our quarterly earnings calls throughout 2025.”
PENN also addressed rumors of sell off
Lastly, there are rumors that PENN Entertainment could look to sell some or all of its retail casino properties as well as its online sportsbook.
Snowden said he would not comment on market speculation but also did not deny the rumors outright.
“We haven’t commented and won’t comment on market rumors and speculation. What I will say is that as a company and as a board, we always have and always will evaluate opportunities to enhance value and will continue to take actions that we believe are in the best interest of the company and our shareholders. With that said, we’re very confident in our strategy and the value that it’s going to deliver for shareholders over the short-term, medium-term and long-term. So that’s the way I would answer that question. And I would say don’t believe everything you read. And… just remember that our assets, our land-based assets are all part of different leases. So, it’s not as simple and easy as you just sell off an asset[…]I’m just going to leave it at that.”
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