Penn Entertainment has agreed a $25m deal that would see the ESPN Bet operator acquire Wynn Resort’s New York licences.
Penn Entertainment has agreed a $25m deal to acquire Wynn Resorts’ New York licences.
Penn said the agreement, pending regulatory approvals, will allow its ESPN Bet brand to launch in the Empire State in 2024.
Under the terms, Penn will acquire Wynn’s WSI US, LLC subsidiary for $25m, the entity which holds WynnBet licences as issued by the New York State Gaming Commission.
These licences will provide Penn with mobile sports betting market access for the state. This would see ESPN Bet become one of New York’s nine available online sports betting brands.
Current active brands comprise FanDuel, DraftKings, Bally Bet, BetMGM, Caesars Sportsbook, Fanatics Sportsbook, Resorts World Bet and BetRivers.
“This is an important development that will bring ESPN Bet to the largest regulated online sports wagering market in North America,” said Penn 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.”
Wynn Resorts scales back online ambitions
There has been previous hints that Wynn was planning on exiting New York.
In August 2023, the casino operator announced it would exit at least eight states due to high required marketing spend and a dearth of iGaming legislation.
Instead, the company said it aimed to primarily focus on states where it had a physical presence through its land-based casinos, principally Nevada.
Meanwhile WynnBet’s Michigan and New York operations were placed “under review”.
Some had speculated the company was waiting to see whether its bid for one of the upcoming down-state casino licences was successful before deciding whether to exit the state.
The news comes in the wake of another record month for New York, which reported $1.96bn in January 2024. This represents an 11.5% rise from the previous year.
New York has historically represented something of a dilemma for operators. While the state features a large and wealthy population, a 51% tax on revenue stands at the highest in the country.
The big question for the state is whether iGaming legislation efforts will be successful, which would greatly increase the long-term revenue potential of the state.
Last month, Wynn confirmed that WynnBet would be exiting its ninth state, Massachusetts.