Dynamic Restructuring at Penn Entertainment: Aaron LaBerge Appointed as New CTO

The National Football League (NFL) is starting a new season, which also marks a significant new beginning for Aaron LaBerge. Since July, LaBerge has taken on the role of Chief Technology Officer (CTO) at the gambling and online betting provider Penn Entertainment. LaBerge joined Penn to drive the company's technological efforts, particularly the integration of betting with the ESPN brand and the connection of the company's physical venues—casinos, restaurants, hotels, and horse racing tracks—with digital offerings like ESPN Bet. "I think this is a tremendous opportunity for us," LaBerge notes. The sports betting industry is experiencing rapid growth but remains in the maturation process since the Supreme Court in 2018 overturned a 1992 law that had prohibited commercial sports betting in most states. Currently, 38 states and D.C. allow some form of sports betting. However, companies like Penn must obtain individual licenses in each state. Last year, Americans wagered a record $120 billion on sports betting, an increase of nearly 28% compared to 2022, according to the American Gaming Association. These bets generated $10.9 billion in revenue. Nonetheless, ESPN Bet lags behind industry leaders like FanDuel and DraftKings. Penn operates ESPN Bet under a 10-year license, for which it paid Disney $1.5 billion in cash and millions in stock options. LaBerge's move to Penn was a natural fit: he had spent two decades at Disney, where he was involved in the creation of ESPN.com and the first live internet draft. In his last role as CTO of ESPN and Disney’s entertainment divisions, he oversaw nearly all Disney businesses except for the theme parks. LaBerge did not initially plan to take on the CTO position at Penn. Due to Disney's interest in the success of ESPN Bet, he advised Penn CEO Jay Snowden in the search for a CTO. After a candidate declined the position, LaBerge realized he was ready for a new challenge. He is now Penn’s first CTO to oversee the entire business, including both physical and digital offerings. One chapter from Disney’s success that LaBerge wants to apply at Penn involves developing user identities that show how customers spend their money. This data enables tailored marketing efforts that increase revenue per user. "It's very similar to the connectivity that needs to happen at Penn as we link our land-based casinos with our interactive offerings," LaBerge explains. New approaches to audience engagement are also in the works. Simplified betting languages and integrating sports betting into other ESPN businesses, like fantasy football, are intended to attract more users. "We have the ability to strategically control how we display betting information based on the bettor’s level of knowledge," says LaBerge.