Disney’s ESPN has changed up its gambling partners and go-to-market betting strategy.
ESPN and DraftKings clinched a major new agreement that makes DraftKings the exclusive “official sportsbook and odds provider of ESPN,” effective Dec. 1, 2025. Also Thursday, ESPN announced the end of its deal with Penn Entertainment under which the companies “mutually agreed” to the early termination of their exclusive U.S. online sports betting agreement on Dec. 1 after two years.
ESPN Bet, which has been powered by Penn, will shift to a sports-betting content brand with DraftKings Sportsbook integrations, anchored by ESPN’s betting show, “ESPN BET Live,” which currently airs weekdays at 6:30 p.m. ET on ESPN2, and dedicated social and digital channels.
Leading up to and following the Dec. 1 termination date of its deal with Penn, ESPN will work with the gambling operator “to facilitate a transition” for users from ESPN Bet to Penn’s theScore Bet.
Beginning next month, DraftKings entertainment products will start to be exclusively 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.
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. We are excited about this new collaboration with DraftKings.”
DraftKings also will play a major role across ESPN’s digital platforms: DraftKings will power the betting tab within the ESPN app and DraftKings customers will receive special promotions for ESPN Unlimited, the recently launched direct-to-consumer product.
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DraftKings operates online wagering in 28 states and Washington, D.C., and Ontario, Canada, with more than 10 million customers across its products. The deal with ESPN “expands ESPN’s ability to be the go-to platform for sports fans with access to DraftKings’ products,” the companies said.
“ESPN’s unmatched visibility across the world of sports make this collaboration a natural fit,” said Jason Robins, CEO and co-founder of DraftKings. “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.”
Meanwhile, with the wind-down of ESPN’s pact with Penn — announced in August 2023 with a 10-year term — all outstanding payments to ESPN from Penn Entertainment will cease in the fourth quarter of 2025. Penn will continue to be an ESPN advertising client.
“Together, ESPN and PENN created a truly unique offering with unparalleled integrations across our various media assets,” said Pitaro. ESPN drove more than 2.9 million new users to Penn’s services, he said, “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.”
Under the terms of the original commercial agreement, ESPN agreed to provide Penn with media, marketing services and the exclusive right to the ESPN Bet trademark for online betting 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.
Jay Snowden, president and CEO of Penn Entertainment, said the company plans to refocus its digital strategy on its iCasino business, “while continuing to capitalize on our omnichannel advantage as the nation’s leading regional retail casino operator.” Snowden said Penn plans to rebrand its online betting service in the U.S. as theScore Bet with a target date of Dec. 1, to coincide with the expected launch of sports betting in Missouri, subject to regulatory approvals. Penn currently operates theScore Bet brand in Ontario, Canada; theScore media app has approximately 4 million monthly active users across North America.
From Variety US