PENN Entertainment CTO: ESPN Bet possibilities are “limitless”
Ex-Disney exec details the product’s new capabilities on the back of New York’s regulator approving the acquisition of Wynn Interactive’s licence
PENN Entertainment chief technology officer (CTO) Aaron LaBerge has insisted the possibilities at ESPN Bet are “limitless” following regulatory approval for its launch in New York, which will be the company’s 20 jurisdiction.
LaBerge, who was announced as CTO in April after 20 years spent at ESPN parent company Disney, has explained in a LinkedIn post why he is “betting” on PENN to have a bright future.
However, he conceded that the competition is “formidable” and that its “undeniable” ESPN Bet, which launched in November 2023 following PENN’s shelving of Barstool Sportbook, “has ground to make up.”
Earlier this week, New York State Gaming Commission (NYSGC) approved PENN’s acquisition of Wynn Interactive’s licence, a transaction worth $25m.
The New York launch will mean ESPN Bet’s total addressable market in the US will rise from 40% of the population to 46%, yet the entry comes too late for the start of the NFL and college football season, which is now in its fourth and fifth week, respectively.
According to LaBerge, the NFL is one of the first opportunities for the operator to showcase ESPN Bet’s new features, which will be available throughout the remainder of this year and into the start of 2025.
LaBerge said the company has a “network of over four million unique digital bettors” and there is a clear objective in mind – to build the best product for its players.
The CTO said: “That goal is simple: create the best product for sports fans by elevating how they find, place and track their bets – both within ESPN Bet and across the entire ESPN ecosystem.
“Our goal is ambitious. Our competitors in the space are formidable. And it’s undeniable that we have ground to make up, as we are still relatively new compared to others.
“Nonetheless, I wholeheartedly believe in what PENN and ESPN are building together. That’s why, after over two amazing decades at Disney, I decided to make this leap.
“To me, the opportunity to apply my background in unlocking the combined power of retail, media and digital assets to reimagine industry-best customer experiences at PENN was too special to pass up.”
Detailing some of the ESPN Bet’s product improvements, the CTO said players will be able to place a wager on ESPN Bet and then track the bet on the ESPN app, removing the “friction fans experience today.”
Additionally, LaBerge highlighted that players will also see easier navigation on the app as well as trending bets and profit boosts.
He added: “ESPN Bet’s parlay system has been overhauled. Our old interface didn’t allow for filtering and made it difficult for users to search for specific parlays.
“Now, users can take advantage of the new ‘Parlay Lounge’, which features the ability to see the number of bets others have placed.
“With our dynamic vision for the future, technology talent and our partnership with ESPN, the possibilities for ESPN Bet are limitless.
“But our expectations are clear: we don’t just want to be in the middle of the pack, we want to win.”
Despite all this, ESPN Bet has struggled to achieve cut-through, with Eilers & Krejcik Gaming noting that average revenue per monthly unique player (ARPMUP) was around $27 in Q1 2024, compared with $120 at FanDuel.
The analyst firm said this disparity was driven by “a relatively weaker SGP product, fewer VIPs and, potentially, trading.”
Earlier this week, PENN made its second round of redundancies this year, the first coming in July. Some ESPN Bet employees are expected to lose their jobs but the exact number remains to be seen.
A PENN spokesperson told EGR: “These changes, affecting a limited number of positions at PENN Interactive, are part of the deferred organisational initiatives that followed our acquisition of theScore, which we had previously spoken about.”