ESPN Exits ESPN BET Deal With PENN, Goes Into Business With DraftKings

DraftKings will integrate ‘innovative fan experiences’ across ESPN platforms and DTC service

Just minutes after announcing that it had mutually terminated its exclusive U.S. online sports-betting agreement with PENN Entertainment, ESPN revealed a new multiyear deal to make DraftKings its Official Sportsbook and Odds Provider. The ESPN BET online-sports-betting app will be sunsetted on Dec. 1, and “ESPN BET” will shift to a sports-betting–content brand with DraftKings Sportsbook integrations across ESPN’s ecosystem. A full rollout is expected in 2026.

“Our betting approach has focused on offering an integrated experience within our products,” says ESPN Chairman Jimmy Pitaro. “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. We are excited about this new collaboration with DraftKings.”

ESPN and DraftKings Enter Multiyear Agreement

DraftKings will play a major role across ESPN’s digital platforms, powering the betting tab within the ESPN app. In addition, at launch, ESPN users will be able to access betting features and such offerings as DraftKings’ sportsbook, daily fantasy, and DraftKings Pick6. ESPN customers will also receive special promotions for the newly launched ESPN Unlimited direct-to-consumer product.

The “ESPN BET” moniker will become a sports-betting content brand with DraftKings Sportsbook integrations, anchored by ESPN’s betting show, ESPN BET Live (weekdays at 6:30 p.m. ET, ESPN2), and dedicated social and digital channels.

“ESPN’s unmatched visibility across the world of sports make this collaboration a natural fit,” says DraftKings Co-Founder/CEO Jason Robins. “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. Together, we’re delivering a seamless, engaging, and responsible experience that elevates how fans connect with live sports.”

As part of the announcement, DraftKings and ESPN said they will collaborate on responsible gaming initiatives and dedicate prominent assets to educate, raise customer awareness, and promote responsible play through campaigns and integrations.

DraftKings operates in 28 states; Washington, DC; and Ontario, Canada, and has more than 10 million customers across its products, positioning the deal to lead in innovation, engagement, and fan access. Access to DraftKings’ products expands ESPN’s ability to be the go-to platform for sports fans.

PENN Entertainment and ESPN Mutually Part Ways Early 

Meanwhile, PENN Entertainment plans to rebrand its online–sports-betting (OSB) offering in the U.S. from ESPN Bet to theScore Bet with a target date of Dec. 1. The company currently operates theScore Bet brand in Ontario, and its OSB product across both the U.S. and Canada will now leverage connectivity with its theScore media app, which has approximately 4 million monthly active users across North America.

Under the terms of the deal, announced in August 2023, ESPN agreed to provide PENN with media, marketing services, and the exclusive right to the ESPN BET trademark for OSB in the U.S. in exchange for $150 million per year in cash payments to ESPN and warrants to purchase common stock of PENN. The agreement had an initial term of 10 years, with the right for either party to terminate the agreement after the third year if specific market-share performance thresholds were not met.

“When we first announced our partnership with ESPN,” says PENN Entertainment CEO/President Jay Snowden, “both sides made it clear that we expected to compete for a podium position in the space. 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. [PENN plans] 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.”

Pitaro adds, “Together, ESPN and PENN created a truly unique offering with unparalleled integrations across our various media assets. ESPN drove over 2.9 million new users into the PENN ecosystem, with a strong uptick in first-time bettors this fall. We appreciate the collaboration we had with PENN and are now pursuing other media and marketing opportunities within this space.”

The Dec. 1 target date for the theScore Bet rebrand will coincide with the expected launch of sports betting in Missouri (subject to regulatory approvals). All outstanding payments to ESPN will cease in fourth quarter 2025. Leading up to and following the termination date, ESPN will work with PENN to facilitate a transition from ESPN BET to theScore Bet. PENN will continue to be an ESPN advertising client.

Snowden adds that PENN’s OSB offerings will continue to provide a top-of-funnel cross-sell opportunity for its Hollywood-branded iCasino, which will remain integrated into the company’s OSB product offering in states where legal, in addition to serving as a standalone iCasino app.