Will Account Linking Lead To Sizable Market Share Gains For ESPN BET?

As smartphones have replaced the counter for the preferred method of placing a sports wager, today’s bettor has little to no patience.

Consequently, the books that can optimize the experience in a quick, intuitive manner are the ones that will score points with America’s sports bettor. Last month, ESPN and PENN Entertainment launched a new initiative that enables users to link their accounts between ESPN BET and ESPN’s main app with a few quick clicks.

Mike Morrison, vice president of ESPN BET and ESPN Fantasy, tested the account linking feature shortly after the launch. Morrison, a longtime ESPN executive, spent a few minutes playing around with the apps, before making a few small bets. By the time he clicked out of ESPN BET, the app from ESPN appeared on his screen. Morrison found the experience to be easy, seamless, and intuitive. In total, the process of linking from one app to the other took about 30 seconds.

“For the user it is a great experience, it shows where we’re heading with deeper integrations,” Morrison told me on the sidelines of the ESPN Edge conference.

Morrison made the comments at ESPN Edge, an innovation conference that examines the intersection between cutting-edge technology and sports. At the same event last November, Morrison appeared on stage with PENN Entertainment CEO Jay Snowden days before the rollout of ESPN BET.

ESPN and PENN are partnering on a lucrative 10-year deal, under which PENN gained the rights to power the network’s sports betting operations. While account linking has already created an uptick in handle on ESPN BET, questions remain if the initiative can create a dent in the lead held by frontrunners FanDuel and DraftKings. Leading executives in charge of the project are bullish on the idea.

How It Works

From ESPN’s vantage point, the benefits of account linking are copious. Through the product, users are able to track the progress of their wagers placed on ESPN BET. For linking their ESPN BET accounts, customers can receive various incentives with the online sportsbook, according to an explanatory page on ESPN.com. There are several methods to facilitate the account linking process through the settings on ESPN’s app, a prompt on the app for ESPN BET, as well as a simple pop-up.

One year into the sports betting game, ESPN is conducting a deep dive when it comes to research on the sports fan who happens to dabble in betting. In many respects, hyper connectivity in Morrison’s view can become a huge innovation play. He regards account linking as a major driver of growth.

Since the launch of account linking, metrics on betting and engagement are way up, Morrison notes. Approximately a week after the debut, tens of thousands of users tried the function, according to PENN. In the month since, the number has grown exponentially. In a research note released this week, Barclays analyst Brandt Montour wrote that PENN Entertainment has seen increases in time spent on the app, increased bet frequency (albeit at lower average bet sizes), and higher parlay mix, all leading to higher gross gaming revenue overall.

“This is underpinning PENN’s previous expectations that it can grow market share slowly and steadily,” Montour wrote. “Those linked accounts are also a stickier customer, and PENN is looking to reactivate dormant accounts with these new improvements, which should help with retention and overall wallet share.”

The Next Phase Of Implementation

Penn Entertainment can also lean on the expertise of Aaron LaBerge, its newly appointed chief technology officer. LaBerge previously spent more than five years at The Walt Disney Company as president and CTO of Disney Entertainment and ESPN. Morrison lauded LaBerge for his knowledge of ESPN’s systems and internal framework, adding that no one is “better at sports technology.”

Thus far, LaBerge has been pleased with the feedback ESPN BET has received. The product allows bettors to synchronize their fandom, their favorite teams, and their usage history within a click. Though LaBerge concedes that the sports betting market is intensely competitive, he is quick to point out that there is not an equivalent when it comes to account linking. In October, ESPN Digital received 123.7 million unique visitors, according to Comscore data, topping the U.S. sports category for the 32nd consecutive month. The integration with ESPN will give the betting site a “huge competitive advantage” over time, he believes.

With the next incarnation, ESPN plans to add an element of personalization. Let’s say you have Saquon Barkley on your fantasy team in a weekly matchup against Derrick Henry. But if the Ravens are not scheduled to play until Monday night, fantasy players will have to wait all weekend on the result. Down the road, ESPN BET may design a slew of dynamic parlays based on your fantasy rosters. One option includes an automated parlay that contains your starters. Alternatively, you may be given the option to bet on the players you’re rooting against as a hedge for the fantasy matchup.

As the fantasy playoffs near, users on the cusp will root for others to knock out rivals that are vying for the final spots. On the sportsbook side, ESPN BET may whet their appetite with a parlay around that rooting interest. Think of it as a “simplified version of daily fantasy with none of the overhead,” LaBerge notes.

“The possibilities are endless,” he emphasized.

Ahead of the debut of ESPN Flagship, the network’s direct-to-consumer streaming service, ESPN Chairman Jimmy Pitaro discussed the possibility of a personalized SportsCenter for viewers in the not-too-distant future. Morrison acknowledged that a personalized bet vision experience may face some complications due to rights agreements. Still, he indicated that features such as a streaming game pass should be considered as a carrot for bettors who wager on the contest.

With account linking in place, the coming months will shed light on the power of the ESPN brand as the sportsbook looks to improve market share, JMP Securities analyst Jordan Bender wrote in a November note. Aspirational to a fault, Morrison is motivated to bring ESPN BET to new heights by creating the best app experience as possible for bettors.

“Linking ESPN and ESPN BET accounts is part of the seamless, integrated betting experience we envisioned from the start,” Morrison said. “No other company in the betting space can offer the level of personalization or interconnected experience that ESPN BET provides.”