ESPN Bet Under Fire Days After Penn CEO Expresses Optimism

ESPN Bet’s odds of being shut down took a significant shift this week.

During an earnings call last week, Penn CEO Jay Snowden addressed concerns over the struggling sportsbook but expressed optimism about its future. He told shareholders that, thanks to several changes over the last year, he believes ESPN Bet will turn a profit starting in 2026. 

While Snowden’s words were delivered confidently, not everyone was sold on his message. 

HG Vora, one of the company's top shareholders, was one of those people. He filed definitive proxy materials to hold an election to replace the company's current leadership, including Snowden. 

The activist investor also sent a letter to Penn shareholders containing a scathing indictment of the company’s top three executives. He pointed to the company’s poor performance over the last few years and its continued failure in the US sports betting market. The letter accused Snowden and Board Chair David Handler of putting their interests ahead of the company.

“This election is about more than improving the Board’s composition; it is about catalyzing meaningful change at PENN. It is imperative that shareholders send a clear and unambiguous message that continued ineffective leadership, lack of accountability, and entrenching actions will no longer be tolerated.” Vora’s letter concluded 

The vote on new leadership would likely occur at the shareholder meeting next month.

Will Penn Exit the US Sports Betting Market?

One reason Vora is frustrated is the company’s failure to break into the US sports betting market after years of investment.

Penn’s first attempt to enter the sports betting industry was with the now-defunct Barstool Sportsbook. The media giant was criticized for violating marketing rules and decided to exit the market instead of continuing.

After Barstool failed, Penn negotiated with Disney to launch ESPN Bet. While there haven’t been the same legal problems, the platform has failed to gain much market share. The ESPN brand has not helped sway bettors away from rivals like FanDuel and DraftKings, leaving Penn desperate for a solution.

Penn CEO Jay Snowden has also discussed the company’s interest in prediction markets and suggested launching its platform. While nothing was official, the idea of further investing in an industry in which the company is failing rubbed some shareholders the wrong way. Time will tell if they will push for an exit from the industry over the summer.