Thursday, June 13, 2024
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Penn and Wynn Resorts shake up New York sports betting landscape with license deal

Jefferies analyst noted that Penn Entertainment’s (NASDAQ:PENN) acquisition of the New York mobile sports betting licenses held by Wynn Resorts (WYNN) gives the company access to the largest market in the U.S. for ESPN Bet.
“It presents PENN with an opportunity to gain market share but also presents the question of cost magnitude. Although the terms appear favorable for PENN, optimism should be cautious, as investments in the Interactive segment could potentially accelerate.”
On the other side of the deal, the development is seen as a modest positive for Wynn Resorts (WYNN) from the monetization of an excess asset.
Looking ahead, Katz said a key question for investors will be whether Penn Entertainment (PENN) will increase promotional spending to impact the profitability timeline. There is also the question of what happens if Wynn Resorts (WYNN) wins one of the land-based licenses in New York, which could allow it to pursue a mobile partner for an omni-channel strategy.

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