ESPN Bet Launch Leads to $334 Million Loss for Penn Gambling Unit

Penn Entertainment Inc.’s interactive gambling unit lost $333.8 million in the fourth quarter because of costs associated with the Nov. 14 launch of its new ESPN Bet sports-wagering product, sending the shares lower.

Sign-ups for the service exceeded management’s projections, with more than 1 million new customers coming aboard in the first two months, executives said on a call with investors. Many were drawn by generous promotional offers that Penn cut in half just before the Super Bowl this month, Chief Executive Officer Jay Snowden said.