Cloud 9fin Penn raises the sports betting stakes with ESPN deal
Casino operator Penn Entertainment is betting that a $2bn partnership with ESPN will supercharge the company’s foray into the online sports wagering market.
It could be an expensive gamble: online sportsbooks have been a hotspot of growth in the US gambling industry, but competitors such as DraftKings and FanDuel are already starting to pivot to profitability from a “growth by any means” mentality after spending big to take market share.
Will Penn’s investors have the patience for another growth story? And how could a regulatory backlash against online gambling impact the industry?
On this week’s US edition of Cloud 9fin, US deputy editor David Bell quizzes senior reporter William Hoffman on Penn’s new tie-up with ESPN and what it means for leveraged credits in the sector.