ESPN Bet launched last month, which marked the network's official foray into the business of sports betting.
But ESPN (DIS) -) has a long road to climb to grow from the 2% market share of the sports gambling market to 20%, which is what PENN Entertainment, the company ESPN partnered with, is projecting by 2027.
It's going to be even more difficult for ESPN as the top names in the space continue to pick up steam, including market leader leader FanDuel, whose parent company Flutter Entertainment is planning to go public in the United States by early next year, according to a report by Front Office Sports.
Related: ESPN dives deeper into sports betting through landmark partnership
Flutter Entertainment, which is based in Ireland, has reportedly secured its plans to list on the New York Stock Exchange by Jan. 29, 2024, less than two weeks before Super Bowl LVIII. FanDuel is the market leader for online sports betting with 39.3% of the market share, according to an August report by Eilers and Krejcik Gaming.
FanDuel's biggest rival in the market right now is DraftKings (DKNG) -), which went public in 2020. The company saw massive dips in 2021, but has seen its stock up over 230% year-to-date. The same Eilers and Krejcik report had DraftKings overtake FanDuel as the market leader for total online gambling, while trailing about 5% in the sports betting category.
Related: What the ESPN Bet deal could mean to the sports media and betting industries
The decision of FanDuel to go public is likely also to protect against one more growing company, PointsBet, who was purchased by Fanatics in October. CEO Michael Rubin has said that his hope for Fanatics, which is known for dominating the merchandise and memorabilia market, is to become a platform where fans can access "anything they want in one place."
Fanatics has not yet gone public, but has suggested that it has plans to go public in the future.
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