WYOMISSING, Pa. - PENN Entertainment, Inc. (NASDAQ:PENN), a major player in North America's entertainment and gaming industry, has announced the acquisition of a New York mobile sports wagering license through a deal with Wynn Interactive Holdings. The $25 million purchase of WSI US, LLC, the license holder, paves the way for PENN to introduce its ESPN BET online sports betting platform to New York's market in 2024, pending regulatory approvals.
The acquisition is a strategic move for PENN, as New York represents the largest regulated online sports wagering market in North America. Jay Snowden, PENN Entertainment's CEO and President, emphasized the importance of entering the New York market for the growth of ESPN BET, which the company aims to expand across the United States in collaboration with ESPN.
WSI US, LLC, was previously granted mobile sports wagering licenses by the New York State Gaming Commission in 2021. Wynn Interactive, a subsidiary of Wynn Resorts (NASDAQ:WYNN), Limited, has now transferred these licenses to PENN as part of the agreement.
PENN Entertainment operates 43 properties across 20 states and offers online sports betting in 18 jurisdictions. The company's alliance with ESPN, established in August 2023, is expected to significantly enhance PENN's digital footprint and customer base through the integration of ESPN's sports media brands.
This news is based on a press release statement from PENN Entertainment, Inc.
InvestingPro Insights
As PENN Entertainment, Inc. makes strategic moves to expand its online sports betting platform, it's worth noting the recent performance of Wynn Resorts, Limited (NASDAQ:WYNN), the company from which PENN acquired the mobile sports wagering license. Wynn Resorts has shown remarkable revenue growth over the last twelve months as of Q4 2023, with a staggering increase of 73.87%, signaling strong recovery and operational success in the industry. This could bode well for PENN's venture into the New York market, considering they are now harnessing a license from a company demonstrating robust financial health.
InvestingPro Tips for Wynn Resorts indicate that analysts are optimistic about the company's future, with four analysts having revised their earnings upwards for the upcoming period. This sentiment could reflect positively on the value of the assets that PENN has acquired. Additionally, Wynn Resorts has been profitable over the last twelve months, which is a reassuring sign for investors and potential partners like PENN Entertainment.
In terms of market performance, Wynn Resorts' stock has experienced a strong return over the last three months, with a 25.42% price total return, showcasing investor confidence and market momentum. These metrics are particularly relevant for PENN as they reflect the financial and market conditions of the company they've recently partnered with through the license acquisition.
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