ESPN’s New Streaming Service Could Boost ESPN BET’s Market Share?
ESPN is betting big on its new direct-to-consumer streaming service, set to roll out in fall 2025 under the simple name “ESPN” at $29.99 a month.
A Game-Changing Launch
“This is going to redefine our business,” said Chairman Jimmy Pitaro, calling it one of the company’s biggest transformations ever.
The platform, tightly linked with ESPN BET, will introduce “watch-and-bet” tools to spark a seamless betting experience, aiming to lift ESPN BET’s lagging 2.35% market share.
The streaming service will weave ESPN BET into its core, building on existing account-linking features launched in November 2024. “It’s a first-in-market integration,” said Penn Entertainment CTO Aaron LaBerge, praising the “best-in-class” betting tools.
Users can already track bets via the ESPN app, but the new platform will let them see odds and place wagers directly within game streams and news content.
“No other company offers this level of personalization,” said Mike Morrison, ESPN BET’s VP, noting increased user time and parlay bets since linking accounts. The service targets 60 million US households, offering a slick vibe for fans who want to watch and bet in one go.
ESPN BET’s Tough Spot
ESPN BET’s got a tough climb ahead. With just 2.35% of the US online betting market, far below its 20% goal for 2027, it trails FanDuel’s 43% and DraftKings’ 34%.
“We’re behind, but the biggest losses are over,” said Penn Entertainment CEO Jay Snowden, who’s banking on the streaming service to drive growth.
Penn’s interactive division, including ESPN BET, lost $109.8 million in Q4 2024, with up to $510 million in losses projected this year. User gripes on platforms like Reddit highlight slow payouts, clunky verification, and weak odds compared to rivals.
The streaming service could be a game-changer for ESPN BET. “It’s about a seamless, integrated experience,” Morrison said, floating ideas like a “game pass” tied to betting activity, though rights agreements pose hurdles.
Personalized promotions based on user preferences could boost engagement, and Snowden promises a “more competitive” app with better parlays by football season.
Penn sees the platform as a way to grow ESPN BET’s share in its 18 active states. But challenges loom: FanDuel and DraftKings keep pulling ahead, and Penn’s $4 billion in interactive losses raise stakes. “Your competitors are moving further away,” warned analyst Chris Grove. A 2026 opt-out clause in Penn’s ESPN deal adds pressure to deliver.
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