ESPN Ends PENN Partnership, Joins DraftKings

Termination of ESPN-PENN Partnership

The 10-year partnership between ESPN and PENN Entertainment, initially launched in 2023, has been mutually terminated ahead of schedule. The agreement will officially end on December 1, with both parties citing strategic realignment as the driving factor. PENN Entertainment had rebranded its Barstool Sportsbook as ESPN Bet under the partnership, but market share performance fell short of expectations. Moving forward, PENN plans to rebrand its sportsbook offering under theScore Bet, with a target relaunch date of December 1, 2025. TheScore Bet, already operational in Ontario, will be expanded across the U.S. pending regulatory approval. PENN aims to leverage theScore's media integration with its sportsbook to attract a larger user base, particularly in cross-selling opportunities for its iCasino products.

ESPN's New Collaboration with DraftKings

In a strategic shift, ESPN has partnered with DraftKings, designating the platform as its exclusive sportsbook partner starting December 1. Under this multiyear agreement, DraftKings will integrate its sportsbook services directly into ESPN's digital platforms, including the ESPN app. This collaboration aims to provide a seamless betting experience while capitalizing on DraftKings’ established expertise and ESPN's vast audience reach. DraftKings’ CEO, Jason Robins, highlighted the natural synergy between the two companies, emphasizing the ability to leverage ESPN's brand and storytelling power. This partnership underscores ESPN's commitment to becoming a significant player in the rapidly growing sports-betting industry, aligning its media assets with innovative betting technology.

Strategic Shifts for Both Companies

The partnership changes reflect strategic pivots for both ESPN and PENN Entertainment. ESPN is doubling down on its direct-to-consumer sports betting services, leveraging partnerships like the one with DraftKings to build an integrated ecosystem for sports fans. This move aligns with Disney’s broader strategy to capture revenue from the burgeoning online sports-betting market. Meanwhile, PENN Entertainment is focusing on its core strengths, including iCasino and retail casino operations. By rebranding its sportsbook under theScore Bet, PENN seeks to streamline its digital offerings and enhance its omnichannel presence across North America. These strategic shifts highlight the evolving dynamics of the sports betting industry, where companies are recalibrating their approaches to capture market share and drive profitability.