Penn Entertainment's ESPN Bet, a sports betting platform, has experienced a significant downturn, missing quarterly revenue expectations by over 10% and resulting in a 15% drop in Penn's stock. Despite the reduction in promotional spending from 16.7% of total handle in Q4 to 4.8% in Q1, ESPN Bet's performance fell short of analyst projections by approximately $30 million. The platform reported 685,000 monthly active users in Q1, an 11% decrease from Q4, and holds the #3 ranking in weekly active users among top online sportsbooks, based on Sensor Tower Data. CEO Jay Snowden highlighted that ESPN Bet is focusing on parlays and same-game parlays as top priorities until September. Additionally, Penn Entertainment is optimistic about the potential boost from the upcoming football season, particularly with the inclusion of New York in Q3.