Penn and ESPN End Betting Partnership; DraftKings Collaboration Ahead
ESPN and Penn Entertainment have agreed to end their exclusive U.S. online sports betting partnership ahead of schedule, paving the way for a potential collaboration between ESPN and DraftKings.
Termination Details
The companies mutually decided to terminate the agreement in December. The original deal granted Penn the exclusive right to use the ESPN Bet brand in the United States, alongside access to ESPN’s media and marketing services. In return, ESPN received $150 million annually in cash and warrants to buy Penn’s common stock.
Although the initial agreement was set for ten years, either party could exit after the third year if specific market share goals were unmet. With the early termination, all remaining payments to ESPN will stop in the fourth quarter of 2025.
Rebranding and Future Plans
Penn intends to rebrand its U.S. online sports betting operations as theScore Bet, with a launch date of December 1, aligning with the anticipated start of sports betting in Missouri, pending regulatory approval.
Despite ending the deal, Penn will remain an ESPN advertising client.
Industry Reactions
“This change has nothing to do with the ongoing NBA gambling scandal,” said an ESPN insider. “But the timing is curious, of course, and the optics here will undoubtedly be improved.” (Hollywood Reporter, 11/6)
ESPN Bet entered the sports betting market relatively late and struggled to deliver popular features that rival platforms already offered.
Author’s Summary
ESPN and Penn part ways early on their betting deal, with Penn set to rebrand and ESPN moving closer to DraftKings amid shifting industry dynamics.