{"id":316820,"date":"2024-04-09T15:06:25","date_gmt":"2024-04-09T20:06:25","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=316820"},"modified":"2024-04-10T10:16:55","modified_gmt":"2024-04-10T15:16:55","slug":"draftkings-espn-bet-adding-share-in-michigan-pennsylvania","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/draftkings-espn-bet-adding-share-in-michigan-pennsylvania\/","title":{"rendered":"DraftKings, ESPN Bet Adding Share in Big States While BetMGM, Caesars Lag"},"content":{"rendered":"

In a pair of the largest states where mobile sports betting is available, DraftKings (NASDAQ: DKNG) and Penn Entertainment\u2019s (NASDAQ: PENN) ESPN Bet are grabbing market share while rivals BetMGM and Caesars Sportsbook struggle.<\/p>\n

\"DraftKings
Kevin Hart in a DraftKings commercial. The company is adding market share in Michigan and Pennsylvania, according to Morningstar. (Image: DraftKings)<\/figcaption><\/figure>\n

In a recent report, Morningstar analyst Dan Wasiolek noted ESPN Bet<\/a> averaged revenue improvement of 7% and 4%, respectively in Michigan and Pennsylvania, in February compared to the year-earlier period when Penn operated sports wagering under the Barstool Sportsbook brand. He added that ESPN Bet now has a high single-digit share in both states, and it appears some of that came at the expense of competitors.<\/p>\n

Meanwhile, MGM\u2019s share over the same time is lower by 3 and 5 percentage points; Caesars\u2019 is flat and down 3 percentage points; and smaller competitors are collectively lower by 3 and 3 percentage points,\u201d observed Wasiolek.<\/p><\/blockquote>\n

Michigan and Pennsylvania are critical states for any mobile sportsbook operator. Since the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) in 2018, just four states have outpaced Pennsylvania in terms of sports betting handle and revenue. Michigan is 10th on that list despite mobile sports wagering being legal there for just over three years.<\/p>\n

DraftKings Cementing Leadership in Big States<\/h2>\n

DraftKings vies with Flutter Entertainment\u2019s (NYSE: FLUT) FanDuel for the top spot in terms of US online sportsbook market share and in the bulk of the states in which both operators conduct businesses, they\u2019re first and second, well ahead of their rivals.<\/p>\n

\n

Citing first mover and technology advantages<\/a>, Wasiolek noted DraftKings\u2019 share in Pennsylvania and Michigan jumped 7% and 11%, respectively, in February.<\/p>\n<\/div>\n

\u201cBased on data from these states, we have increased confidence in DraftKings\u2019 intermediate revenue opportunity and have increased our 2024-28 sales compound annual growth rate (CAGR) to 24% growth from 23%, leading to a lift in its valuation to $47 per share from $44,\u201d wrote the analyst. \u201cWe think investors should keep DraftKings shares on their radar for any pullbacks below our valuation.\u201d<\/p>\n

Wasiolek is less optimistic on Caesars Entertainment\u2019s (NASDAQ: CZR) digital unit, noting it could be difficult for that segment to achieve earnings before interest, taxes, depreciation, and amortization (EBITDA) targets due to lower share sales in Michigan and Pennsylvania.<\/p>\n

\u201cAs a result, we now expect Caesars\u2019 digital margins to average low-20% during the next 10 years, down from the mid-20s, driving our fair value estimate to $73 per share from $75,\u201d said Wasiolek.<\/p>\n

Cautious Optimism on ESPN Bet<\/h2>\n

To its credit, Penn\u2019s ESPN Bet has performed admirably<\/a> since its debut last November, and its ability to grab share from non-DraftKings\/FanDuel rivals could allay investor concerns regarding the app\u2019s performance in states where competitors have been entrenched for several years.<\/p>\n

Wasiolek sees some value in Penn shares, though he\u2019s cautious about the regional casino giant\u2019s debt burden.<\/strong><\/p>\n

\u201cPenn\u2019s $24 fair value estimate offers investors an attractive entry point to an emerging player in the growing sports betting market, with the caveat that its more leveraged balance sheet could keep shares volatile amid enduring high financing costs,\u201d concluded the analyst.<\/p>\n","protected":false},"excerpt":{"rendered":"

In a pair of the largest states where mobile sports betting is available, DraftKings (NASDAQ: DKNG) and Penn Entertainment\u2019s (NASDAQ: PENN) ESPN Bet are grabbing market share while rivals BetMGM and Caesars Sportsbook struggle. In a recent report, Morningstar analyst Dan Wasiolek noted ESPN Bet averaged revenue improvement of 7% and 4%, respectively in Michigan […]<\/p>\n","protected":false},"author":46,"featured_media":285103,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,86432,86430,86438,1074],"tags":[81903,86697,86455,86457,80968],"acf":[],"yoast_head":"\nDraftKings, ESPN Bet Adding Share In Michigan, Pennsylvania<\/title>\n<meta name=\"description\" content=\"DraftKings, ESPN Bet Adding Share in Big States While BetMGM, Caesars Lag.\" \/>\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\/draftkings-espn-bet-adding-share-in-michigan-pennsylvania\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DraftKings, ESPN Bet Adding Share In Michigan, Pennsylvania\" \/>\n<meta property=\"og:description\" content=\"DraftKings, ESPN Bet Adding Share in Big States While BetMGM, Caesars Lag.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/draftkings-espn-bet-adding-share-in-michigan-pennsylvania\/\" \/>\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=\"2024-04-09T20:06:25+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-10T15:16:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/08\/KevinHart_00643_SportsBar_Retouched-digital.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\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\/draftkings-espn-bet-adding-share-in-michigan-pennsylvania\/\",\"url\":\"https:\/\/www.casino.org\/news\/draftkings-espn-bet-adding-share-in-michigan-pennsylvania\/\",\"name\":\"DraftKings, ESPN Bet Adding Share In Michigan, Pennsylvania\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-espn-bet-adding-share-in-michigan-pennsylvania\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-espn-bet-adding-share-in-michigan-pennsylvania\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/08\/KevinHart_00643_SportsBar_Retouched-digital.jpg\",\"datePublished\":\"2024-04-09T20:06:25+00:00\",\"dateModified\":\"2024-04-10T15:16:55+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"DraftKings, ESPN Bet Adding Share in Big States While BetMGM, Caesars Lag.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-espn-bet-adding-share-in-michigan-pennsylvania\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/draftkings-espn-bet-adding-share-in-michigan-pennsylvania\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-espn-bet-adding-share-in-michigan-pennsylvania\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/08\/KevinHart_00643_SportsBar_Retouched-digital.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/08\/KevinHart_00643_SportsBar_Retouched-digital.jpg\",\"width\":1200,\"height\":800,\"caption\":\"Kevin Hart in a DraftKings commercial. 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