How Much Of The Sports Betting Market Can ESPN Bet Capture?
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00:00 Now let's go over to the top story really in sports betting over the last couple of
00:06 weeks was Barstool parting ways or Penn parting ways with Barstool essentially and deciding
00:13 to now partner up with ESPN and some very, very big, I would say aspirations from this
00:21 ESPN bet essentially saying that they would like to get 20% of the sports betting market
00:27 share as a startup.
00:30 My goodness, Pat, like that, that has a lot of people, I think just kind of putting one
00:34 eye up like the rock and wondering whether or not that's actually legitimate.
00:38 FanDuel and DraftKings have dominated the market and then ESPN bets fighting with BetMGM
00:43 and a lot of the Caesars and a lot of the other operators.
00:45 You think that they can come close to this?
00:49 And let's not forget Fanatics is launching this fall too in earnest.
00:53 So you've got two big new market players that are going to be trying to vie for a significant
00:58 market share.
00:59 So that's really interesting.
01:00 Over at Legal Sports Report, our analyst who's really smart, Eric Ramsey, kind of dives into
01:07 the ups and downs and bear and bull cases for ESPN bet.
01:12 Sorry, I almost switched that up.
01:15 And really, I mean, it comes down to this.
01:18 ESPN is the name in U.S. sports and, you know, worldwide leader in sports.
01:25 So a lot of people, I think, you know, we live in a bubble of sports betting.
01:28 I think a lot of people will say, OK, well, FanDuel, DraftKings, those have the best products.
01:33 That's who we want to bet with, you know, easy to use.
01:36 But I think, again, we live in this bubble.
01:38 I think a lot of sports fans just see ESPN and they'll say, hey, maybe I'll try this
01:42 out now.
01:43 So I think that's something to keep in mind.
01:46 Eric says, you know, the bear case is probably 5%, which is right around what Barstool had.
01:53 Penn has always wanted to get around 15% of the market.
01:56 And yeah, they're putting a 20% target up there.
01:59 And that's, you know, that's going to be tough because you look at the top four, FanDuel,
02:06 DraftKings, BetMGM and Caesars, they control about 90% of the revenue in U.S. sports betting.
02:11 So if you're going to get more than that 5% that Penn already had with Barstool, you're
02:16 you're one, you're going to have to take up the the trailers who are, you know, getting
02:22 all the crumbs that they can, but then also go after and try to cannibalize some of these
02:28 bigger operator customers.
02:30 And you're not going to do that, as I think you and I talked about recently, a solid product.
02:35 And we have no idea what the ESPN bet product looks like yet and ease of use and and all
02:40 of that.
02:41 But, you know, there's this.
02:42 Yeah, it's a tale of two possibilities, really, with ESPN.
02:45 And it's not promising when you really look at it.
02:49 You know, Barstool didn't fare well.
02:53 FoxBet just closed down with a similar idea and model behind it.
02:57 Of course, Fox Sports isn't ESPN, but it's similar.
03:01 Sports Illustrated is struggling with theirs and really have pivoted to online casino.
03:07 Maxim bet, of course, closed and was hoping for some status from their media.
03:13 So this media licensing issue, it's not necessarily a gold mine.
03:19 But again, ESPN carries a weight that nobody else does.
03:22 And maybe that can that can make the difference.
03:24 But it's going to be a fun journey to watch, especially as both ESPN and Fanatics ramp
03:30 up and try to compete for some market share.
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