ESPN Bet will not have an additional surcharge when they launch in New York

During a second-quarter earnings call last Thursday, Penn Entertainment CEO Jay Snowden said that ESPN Bet will not have a surcharge like DraftKings plans to add. ESPN Bet’s parent company is Penn and the two have been working together for a few years now. Jay Snowden mentioned that a surcharge tax in early 2025 is not something ESPN Bet is thinking about. However, Snowden did have to be honest and say that a surcharge could happen in the future. At the earnings call, Penn reported a Q2 revenue of $1.66 billion and a net income loss of $26.8 million. They were dragged down by their improved interactive segment which still needs some work. This led to some investors calling for the total sale of Penn but the company did not address those concerns at the earnings call last week. On Thursday, Penn’s stock was up 7% to roughly $18.48.

ESPN Bet will launch in the Big Apple

ESPN Bet has plans to launch its sports betting market in New York ahead of the college football season starting on August 24th. This was announced on the company’s Q2 earnings call last Thursday by Penn CEO Jay Snowden. New York is one of the four “high tax states” that are going to have to add a surcharge to winning bets. While this is expected to add roughly another $220 million to DraftKings, there is concern that customers could leave for another un-taxed market.

Penn Entertainment CEO Jay Snowden said ESPN Bet is taking a different approach for its launch in New York. ESPN Bet is live in 18 states across the US and New York is looking to become the next. Snowden noted that Penn is going to lean on product improvements and the integration of ESPN and their loyal customer into New York.

What product enhancements is ESPN Bet going to offer?

In their last earnings post, ESPN Bet previewed some of their long-awaited product changes. Penn noted that most of the changes will be in place for when their sports betting market goes live in New York later this month. Product enhancements that ESPN Bet will offer include targeted betting offers in the ESPN Fantasy App, “FantasyCast” integration, featuring bets in the ESPN Fantasy App. Additionally, an enhanced menu of spreads and totals in the ESPN native app and a dedicated odds and futures page in the ESPN native app