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00:00 (upbeat music)
00:02 - Okay, so let's get to the very latest here on ESPN Bet.
00:06 Some data is gonna start to come in
00:08 as far as their success.
00:10 It looks like at least initially about three weeks ago,
00:12 we found out, boy, everyone is downloading this app.
00:15 Now that means something, but not everything.
00:18 So let's talk about the revenue that ESPN Bet is generating
00:21 and some response here for how much or how little
00:24 they're getting cut into DraftKings revenue.
00:27 - Yeah, you know, it's really interesting
00:29 because you're right, we get those download numbers,
00:31 but you just, you don't know what to take from that, right?
00:35 Because you have people like me that live in a state
00:38 that I can't use ESPN Bet,
00:39 but I'm downloading it to check it out.
00:41 And gosh, I mean, ESPN Bet was the biggest thing
00:44 to go live in our industry in a while.
00:45 So a lot of people wanted to download it and check it out.
00:49 But we have started to get some revenue reports
00:52 back in from states.
00:53 And although it's very noisy, as the analysts will say,
00:56 because ESPN Bet and Penn Entertainment, their partner,
01:00 they are just promoing the hell out of every state they can
01:04 to try to get as many customers as they can.
01:07 And so that's what they, when they say, you know,
01:09 the numbers are a little noisy, that's what that means,
01:11 because who knows what those numbers would look like
01:13 without those promotions.
01:14 But all that said, Jeffrey Stanchel of Stifel
01:18 had a meeting with DraftKings investor relations folks.
01:22 And they said, you know, at those first two weeks,
01:25 three weeks or so, they really haven't felt an impact
01:28 from ESPN Bet.
01:29 And, you know, one of the good points around that is,
01:34 I'm sure Craig that you've seen the ESPN Bet commercial
01:37 with Al Duncan.
01:39 And they are obviously going out of their way
01:41 to target female casual bettors.
01:44 And there has not been a sports book around
01:47 that has been able to do that.
01:48 I think some of the casino companies
01:51 thought that they could back their way into that,
01:53 BetMGM and Caesars, you know,
01:56 when you think about the typical casino customer,
01:59 you think about an older woman.
02:01 But I don't think that's worked out the way
02:04 that they thought it would.
02:05 But it seems like ESPN is really growing the market now
02:09 with those kinds of customers.
02:11 So look, we have to wait and see, right?
02:14 With so many promos going on and football season,
02:17 it's just too hard to really strip out
02:20 exactly what's happening.
02:22 But it is really interesting to see
02:24 that the app was doing those big numbers
02:26 and first couple of reports show that they are, you know,
02:30 taking, you know, four or five, 6% kind of share
02:34 type situation.
02:35 It's good news for DraftKings
02:39 that they're saying that they don't feel it.
02:41 (upbeat music)
02:43 (bells chiming)