PENN Entertainment acquires Wynn’s mobile sportsbook licence in New York

PENN Entertainment will launch its ESPN BET brand in New York later this year after agreeing to acquire Wynn Interactive’s mobile wagering licence in the state for $25 million.

The company has reached an agreement with Wynn Interactive Holdings to acquire its New York mobile sports wagering licenses, providing PENN with market access to the jurisdiction.

As part of the transaction, PENN is acquiring WSI US from Wynn Resorts’ subsidiary Wynn Interactive Holdings for $25 million.

WSI US is the entity that holds the mobile sports wagering licenses that were previously issued by the New York State Gaming Commission in 2021.

“This is an important development that will bring ESPN BET to the largest regulated online sports wagering market in North America,” said PENN Entertainment CEO and president Jay Snowden. “Together with ESPN, we’re building a brand that is synonymous with sports betting, and operating in the New York market is key as we grow ESPN BET across the US.”

Pending regulatory approvals, PENN will launch its ESPN BET online sportsbook brand in New York this year.

New York’s mobile sports betting market grew by 9 per cent to $1.96 billion in January, with Wynn Interactive's wagers declining 16 per cent year-on-year to $8.8 million, well behind market leader FanDuel’s $867.1 million.

Shares in PENN Entertainment Inc (NASDAQ:PENN) were trading 2.14 per cent lower at $22.89 per share in New York Tuesday, while shares in Wynn Resorts Ltd (NYSE:WYNN) were trading 1.09 per cent lower at $104.63.