The largest U.S. betting market, New York, will see the launch of ESPN Bet.

• ESPN Bet is planning to launch in New York.
• Wynn Interactive's mobile sports betting license in New York state has been sold to Penn Entertainment for $25 million, after Penn was excluded from the licenses awarded in 2021.
• ESPN Bet, Penn's rebranded sportsbook, has been gaining traction and capturing market share in the states where it is available.

ESPN Bet is coming to the Big Apple.

The sports betting platform operator will pay $25 million for market access, as Wynn did in New York state, it announced Tuesday.

In 2021, Wynn Interactive, a subsidiary of Wynn Resorts, was granted a New York mobile sports betting license, while Penn did not and has consequently missed out on the action from the largest sports betting market in the US.

Since New York launched online sports betting two years ago, at least $35.7 billion has been wagered in the state. During all but one month of that time, it has had the highest betting handle of any state.

Speculation was widespread that Penn lost out on a license for its Barstool Sportsbook due to controversy surrounding Barstool founder Dave Portnoy. However, neither the New York State Gaming Commission nor the company ever confirmed this.

Last year, Penn sold Barstool back to Portnoy for $1 million, after paying $551 million.

ESPN was licensed by Penn for $1.5 billion over 10 years, along with $500 million in stock warrants.

ESPN Bet experienced a significant increase in market share in Pennsylvania just a month after its launch, going from 3.7% in October to 7.4% in November.

ESPN Bet has a 8% market share, which is enough to take third place nationally, with BetMGM and Caesars holding the first and second positions.

On Friday, Bank of America analyst Shaun Kelley stated in a note that ESPN Bet could potentially benefit from Taylor Swift fans watching the NFL and specifically the Super Bowl on Sunday, as a result of her relationship with Kansas City Chiefs tight end Travis Kelce.