Penn Entertainment and ESPN End Sports Betting Partnership
WYOMISSING – Penn Entertainment Inc. and ESPN have reached a mutual decision to end their exclusive U.S. online sports betting agreement, effective this December. The decision comes a little over two years into what was originally a ten-year deal.
The agreement, first announced in August 2023, granted Penn exclusive use of the ESPN BET trademark for online betting activities. In return, ESPN received annual payments of $150 million and warrants to purchase Penn common stock.
According to the initial terms, either company could terminate the contract after the third year if specific market share performance goals were not achieved.
“Both sides made it clear that we expected to compete for a podium position in the space,” said Penn Entertainment President and CEO Jay Snowdon.
“Although we made significant progress in improving our product offering and building a cohesive ecosystem with ESPN, we have mutually and amicably agreed to wind down our collaboration,” he added.
Snowdon also stated that Penn plans to refocus its digital strategy on the company’s expanding iCasino operations while considering a rebrand of its U.S. online sports betting business.
Summary
Penn and ESPN ended their betting partnership early, with Penn now shifting focus toward digital growth in iCasino and future rebranding efforts.