Penn Entertainment Plans to Launch theScore Sportsbook on former ESPN BET Platform

Penn Entertainment is proving it has a Plan B. Only hours after making the shocking announcement that it was pulling the plug on ESPN BET, the gaming giant revealed it would quickly launch theScore Bet in the United States.

According to Penn, theScore Bet, which currently operates in Canada, will launch in the U.S. by December 1, in time to coincide with Missouri's rollout of its legal sports betting market.

ESPN BET failed to grab market share

The experiment with ESPN BET lasted less than three years. Penn provided the platform for the sportsbook that was branded with "the worldwide leader in sports." ESPN merely lent its name to the app, and also pushed it on all of its channels and online platforms. But ESPN BET never managed to carve much market share, lagging well behind DraftKings and FanDuel.

Penn is still seeking a viable sportsbook in the U.S. market, and the "divorce" from ESPN means another pivot for the company. Reportedly, Penn will lose more than $800 million in the aborted ESPN deal, which was supposed to last for ten years at a value of $2 billion.

Penn pivots again in sports betting space

Previously, Penn had an arrangement that branded its sprots betting app with Barstool Sports, a company it purchased. That deal was aborted in 2023 amidst lackluster performance and controversy over content Barstool produced surrounding college football betting.

theScore Bet has been successful in Ontario, where it has four million registered users, according to Penn. However, it will enter a U.S. market that has reached a level of maturity since the Supreme Court made its landmark decision in 2018 that has led to the spread of legal sports betting in this country. Close to 40 states and the District of Columbia have some form of legal sports betting. FanDuel and DraftKings combine for between 50 and 75% of the market share in most states.

Penn plans to launch theScore Bet on Dec. 1 in Missouri

A Dec. 1 launch will get theScore Bet on the market in time for the final month of the NFL regular season, as well as the college football playoff. The NFL playoffs, Super Bowl, and college football bowl and championship season are the most active and profitable time of year for sports betting operators.

It will also allow it to take advantage of a new state market: Missouri. That state will represent the only new market for legal sports betting to debut in 2025. The pace of growth in sports betting has slowed dramatically.

Penn: Focus is on Hollywood Casino app

Jay Snowden, Chief Executive Officer of Penn Entertainment, spun the latest news in a positive light.

"Our OSB [Online Sportsbook] offerings will continue to provide a top of funnel cross-sell opportunity for our Hollywood-branded iCasino, which will remain integrated into our OSB product offering in states where legal, in addition to serving as a standalone iCasino app," Snowden said.

Snowden is referring to the Hollywood Casino app, which operates in four states. Online casinos are a more profitable business, due to a higher hold percentage for the operator. However, legalization of iGaming has been methodical in the U.S. Currently, fewer than ten states have legal online casino markets.

Still, it seems apparent that Penn is focusing its attention on the iGaming and retail casino businesses. According to the company, it owns and operates more than 40 casinos in 20 states. Those properties generate revenue in the billions annually. It may be that Penn sees its sportsbook as a "loss leader" designed to acquire customers who may also wish to be online casino or real-world casino consumers.