PENN Entertainment hosted its Q2 2024 earnings presentation and announced a refresh of its ESPN Bet mobile app as well as the rebranding of its retail sportsbooks in Massachusetts and the rest of the country.
The goal of the mobile sportsbook update is to better integrate ESPN Bet with other ESPN digital properties while making the mobile app more easily useable for players.
Lastly, PENN Entertainment discussed its future as it pertains to a surcharge on players’ winnings and the rumors that PENN could sell some or all its business. Both of those topics could impact Massachusetts sports betting greatly.
PENN plans ESPN Bet app upgrades in Massachusetts
ESPN Bet players in Massachusetts can expect quite a few upgrades ahead of football season.
PENN Entertainment plans to improve the mobile app’s homepage, add parlay carousel functionality, and implement the option of a dark mode. Additionally, Parlay+ is being rebranded to Same Gam Parlay seemingly to avoid confusion.
The app will integrate new features, including a referral program and early win payouts, as well as a new ‘Add to Betslip’ option for players who use theScore. A parlay lounge will be added, along with more Same Game Parlay options and a new profit boost button.
PENN Entertainment is not only improving life for its current players. It also plans to integrate ESPN Bet across many ESPN digital platforms to gain new players.
ESPN Fantasy App will include targeted offers and a full ESPN Bet integration into FantasyCast. ESPN’s mobile app will integrate ESPN Bet on the home page and scores page. Additionally, ESPN is adding a new tab to its app dedicated to odds and futures.
Anyone in Massachusetts that uses ESPN’s mobile apps will be seeing a lot more ESPN Bet content once football season arrives.
Plainridge Park Casino sportsbook to rebrand as ESPN Bet this September
On top of PENN Entertainment announcing mobile app improvements for ESPN Bet, the company also announced the rebranding of its retail sportsbooks.
Previously, PENN Entertainment’s sports betting brand was Barstool Sportsbook. That changed when PENN rebranded its sportsbook and launched ESPN Bet in Massachusetts last November. Now, the company is going through and adjusting nine of its retail sportsbook locations nationwide. This includes Plainridge Park Casino in Massachusetts.
According to the Q2 2024 earnings presentation, ESPN Bet sportsbook could debut inside Plainridge Park Casino by the end of August.
PENN Entertainment discusses betting surcharges & future business plans
Beyond the hard facts, PENN discussed two additional topics pertaining to Massachusetts sports betting.
The first revolves around DraftKings’ choice to add a surcharge on players’ winnings in states with tax rates above 20% and whether other operators like ESPN Bet could follow suit. This is important for Massachusetts sports betting because its tax rate is right at 20%. For now, its players are avoiding Massachusetts sportsbook surcharges. But that could change if other operators follow DraftKings or if legislators raise the tax rate any further.
PENN Entertainment Chief Executive Officer and President Jay Snowden discussed this topic during the Q2 earnings call. Although he did not rule out any future surcharge, Snowden said it is not imminent:
“[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.”
Lastly, Snowden addressed rumors that PENN Entertainment could sell some of its business. He elected to not comment but did explain that the company is confident in its strategy moving forward:
“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.”
