{"id":284639,"date":"2023-08-09T14:44:13","date_gmt":"2023-08-09T19:44:13","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=284639"},"modified":"2023-08-09T15:49:25","modified_gmt":"2023-08-09T20:49:25","slug":"caesars-draftkings-win-from-penn-espn-deal-says-analyst","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/caesars-draftkings-win-from-penn-espn-deal-says-analyst\/","title":{"rendered":"Penn\/ESPN Could Boost Caesars, DraftKings Margins, Says Analyst"},"content":{"rendered":"

It\u2019s hard to tell given the declines experienced by the stocks on Wednesday, but Caesars Entertainment (NASDAQ: CZR) and DraftKings (NASDAQ: DKNG) could benefit from Penn Entertainment\u2019s (NASDAQ: PENN) newly announced sports wagering pact with ESPN<\/em>.<\/p>\n

\"DraftKings
An image for the DraftKings\/ESPN<\/em> partnership. That company and Caesars could benefit from being freed of their ESPN<\/em> obligations. (Image: Barrett Media<\/em>)<\/figcaption><\/figure>\n

That\u2019s the take of B. Riley analyst David Bain who, in a note to clients, points out that while initial market reaction is likely to be that of a competitor making strides against Caesars and DraftKings, those companies could benefit from being freed of their agreements with ESPN<\/em>.<\/a> Those pacts were established in September 2020.<\/p>\n

While at first blush, investors may see a more aggressive interactive competitor coming, we note CZR and DKNG should be released from further partnership payments to ESPN<\/em>,\u201d wrote Bain. \u201cIn our view, this allows both companies to pursue more efficient marketing channels \u2014 checks had cited ESPN <\/em>as a net negative in terms of customer acquisition profitability for both companies.\u201d<\/p><\/blockquote>\n

He was correct in his assumption that Caesars and DraftKings investors wouldn\u2019t react favorably to the Penn\/ESPN<\/em> news. In late trading, shares of Caesars are off 1.3% while DraftKings is lower by nearly 10%. Conversely, Penn is higher by 8.78%.<\/p>\n

Potential EBITDA Benefits for Caesars, DraftKings<\/h2>\n

In a stunning agreement unveiled late Tuesday, Penn will pay ESPN<\/em> $1.5 billion over 10 years<\/a> to use ESPN Bet branding for that period with an option for another 10 years at the end of the initial term. The regional casino operator is also granting the sports network equity optionality that could eventually see it control close to a quarter of the gaming company\u2019s shares outstanding.<\/p>\n

\n

Penn estimates the partnership could drive $500 million to $1 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA) for its interactive division. It remains to be seen whether or not Penn can realize those gains. Bain is skeptical.<\/p>\n<\/div>\n

\u201cWhile we are uncertain of PENN’s strategy and therefore do not opine on its deal, we find it interesting it partnered with ESPN<\/em> after others have been vocal that there were fewer benefits than hoped with their own ESPN<\/em> partnership,\u201d noted the analyst.<\/p>\n

He added that some relationships with ESPN<\/em> are drags on partners\u2019 EBITDA, and that the sentiment is applicable to Caesars and DraftKings.<\/p>\n

Other Benefits for Caesars, DraftKings<\/h2>\n

It\u2019s unlikely that Caesars shed any tears over the Penn\/ESPN<\/em> news. Rumors surfaced earlier this year that the casino giant would like to end its arrangement<\/a> with the network, and that it could be DraftKings to buy Caesars out of it.<\/p>\n

\n

With Penn in the picture, Caesars will likely be set free of its ESPN <\/em>obligations without any heavy lifting to make that happen. Additionally, DratftKings saves money because it can\u2019t pursue Caesars\u2019 ESPN<\/em> deal and will likely be forced to leave its accord with the media company.<\/p>\n<\/div>\n

\u201cWe believe the deal between PENN and ESPN<\/em> releases CZR and DKNG from any further commitments with ESPN<\/em>. As such, we view the deal as accretive — at least in the short term — for both CZR and DKNG,\u201d concluded Bain.<\/p>\n","protected":false},"excerpt":{"rendered":"

It\u2019s hard to tell given the declines experienced by the stocks on Wednesday, but Caesars Entertainment (NASDAQ: CZR) and DraftKings (NASDAQ: DKNG) could benefit from Penn Entertainment\u2019s (NASDAQ: PENN) newly announced sports wagering pact with ESPN. That\u2019s the take of B. Riley analyst David Bain who, in a note to clients, points out that while […]<\/p>\n","protected":false},"author":46,"featured_media":261030,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,1074,16693],"tags":[81903,80968,82041],"acf":[],"yoast_head":"\nCaesars, DraftKings Win From Penn\/ESPN Deal, Says Analyst<\/title>\n<meta name=\"description\" content=\"Caesars, DraftKings could benefit from Penn Entertainment's new deal with ESPN.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/caesars-draftkings-win-from-penn-espn-deal-says-analyst\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Caesars, DraftKings Win From Penn\/ESPN Deal, Says Analyst\" \/>\n<meta property=\"og:description\" content=\"Caesars, DraftKings could benefit from Penn Entertainment's new deal with ESPN.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/caesars-draftkings-win-from-penn-espn-deal-says-analyst\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-09T19:44:13+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-09T20:49:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/ESPN.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-draftkings-win-from-penn-espn-deal-says-analyst\/\",\"url\":\"https:\/\/www.casino.org\/news\/caesars-draftkings-win-from-penn-espn-deal-says-analyst\/\",\"name\":\"Caesars, DraftKings Win From Penn\/ESPN Deal, Says Analyst\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-draftkings-win-from-penn-espn-deal-says-analyst\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-draftkings-win-from-penn-espn-deal-says-analyst\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/ESPN.jpg\",\"datePublished\":\"2023-08-09T19:44:13+00:00\",\"dateModified\":\"2023-08-09T20:49:25+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Caesars, DraftKings could benefit from Penn Entertainment's new deal with ESPN.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-draftkings-win-from-penn-espn-deal-says-analyst\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/caesars-draftkings-win-from-penn-espn-deal-says-analyst\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-draftkings-win-from-penn-espn-deal-says-analyst\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/ESPN.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/ESPN.jpg\",\"width\":1200,\"height\":675,\"caption\":\"An image for the DraftKings\/ESPN partnership. That company and Caesars could benefit from being freed of their ESPN obligations. (Image: Barrett Media)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-draftkings-win-from-penn-espn-deal-says-analyst\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Penn\/ESPN Could Boost Caesars, DraftKings Margins, Says Analyst\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Caesars, DraftKings Win From Penn\/ESPN Deal, Says Analyst","description":"Caesars, DraftKings could benefit from Penn Entertainment's new deal with ESPN.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/caesars-draftkings-win-from-penn-espn-deal-says-analyst\/","og_locale":"en_US","og_type":"article","og_title":"Caesars, DraftKings Win From Penn\/ESPN Deal, Says Analyst","og_description":"Caesars, DraftKings could benefit from Penn Entertainment's new deal with ESPN.","og_url":"https:\/\/www.casino.org\/news\/caesars-draftkings-win-from-penn-espn-deal-says-analyst\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2023-08-09T19:44:13+00:00","article_modified_time":"2023-08-09T20:49:25+00:00","og_image":[{"width":1200,"height":675,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/ESPN.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/caesars-draftkings-win-from-penn-espn-deal-says-analyst\/","url":"https:\/\/www.casino.org\/news\/caesars-draftkings-win-from-penn-espn-deal-says-analyst\/","name":"Caesars, DraftKings Win From Penn\/ESPN Deal, Says Analyst","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/caesars-draftkings-win-from-penn-espn-deal-says-analyst\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/caesars-draftkings-win-from-penn-espn-deal-says-analyst\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/ESPN.jpg","datePublished":"2023-08-09T19:44:13+00:00","dateModified":"2023-08-09T20:49:25+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Caesars, DraftKings could benefit from Penn Entertainment's new deal with ESPN.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/caesars-draftkings-win-from-penn-espn-deal-says-analyst\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/caesars-draftkings-win-from-penn-espn-deal-says-analyst\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/caesars-draftkings-win-from-penn-espn-deal-says-analyst\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/ESPN.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/ESPN.jpg","width":1200,"height":675,"caption":"An image for the DraftKings\/ESPN partnership. That company and Caesars could benefit from being freed of their ESPN obligations. (Image: Barrett Media)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/caesars-draftkings-win-from-penn-espn-deal-says-analyst\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"Penn\/ESPN Could Boost Caesars, DraftKings Margins, Says Analyst"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/284639"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=284639"}],"version-history":[{"count":4,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/284639\/revisions"}],"predecessor-version":[{"id":284652,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/284639\/revisions\/284652"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/261030"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=284639"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=284639"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=284639"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}