ESPN, the Disney-owned sports broadcaster, and US gambling company Penn Entertainment have agreed to terminate their sports betting partnership early, with ESPN shifting to a deal with fantasy sports and gaming operator DraftKings.
The transition will start from December 1, when DraftKings will become the exclusive official sportsbook and odds provider for ESPN, while the Penn-powered ESPN Bet will shift to “a sports betting content brand with DraftKings Sportsbook integrations, anchored by ESPN’s betting show, ESPN Bet Live.”
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The announcements were made in separate releases today, with Penn Entertainment chief executive Jay Snowden describing the termination of its partnership with ESPN as “mutual” and “amicable."
He said: “When we first announced our partnership with ESPN, both sides made it clear that we expected to compete for a podium position in the space.
“We plan to refocus our digital strategy on our growing iCasino business, while continuing to capitalize on our omnichannel advantage as the nation’s leading regional retail casino operator.”
Under terms of the original deal, announced in August 2023, ESPN agreed to provide Penn with media, marketing services, and the exclusive right to the ESPN Bet trademark of online sports betting in the US in exchange for $150 million per year in cash payments to ESPN and warrants to purchase common stock of Penn.
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By GlobalDataThe agreement allowed for ESPN to rebrand a relaunch Penn’s sportsbook, then known as Barstool Sportsbook, as ESPN Bet.
The agreement had an initial term of 10 years, with the right for either party to end the agreement after the third year if performance thresholds were not met.
Penn will now stop its annual payments in the fourth quarter and, leading up to the December 1 target date, will work with ESPN “to facilitate a transition” for users from ESPN Bet to PENN’s theScore Bet.
ESPN’s multi-year agreement with DraftKings, meanwhile, will see the gaming and fantasy sports operator play a major role across ESPN’s digital platforms, powering the vetting tab within the ESPN app.
Starting from next month, DraftKings’ products will start to be integrated across ESPN’s platforms, with a full rollout expected in 2026.
At launch, ESPN users will have access to betting features and offerings, including DraftKings’ sportsbook, daily fantasy, and DraftKings Pick6. DraftKings customers, meanwhile, will receive special promotions for ESPN Unlimited, the recently launched direct-to-consumer product.
ESPN chairman Jimmy Pitaro said: “Our betting approach has focused on offering an integrated experience within our products.
“Working with DraftKings, a leader in the space, will allow us to build upon that foundation, continue to super-serve passionate sports fans and grow our ESPN direct-to-consumer business.”
DraftKings chief executive Jason Robins added: “ESPN’s unmatched visibility across the world of sports makes this collaboration a natural fit.
“As an innovative leader in digital sports entertainment, DraftKings is uniquely positioned to integrate our technology and products with ESPN’s iconic brand and storytelling power.”
