Digital Wager Wire highlights the most significant events affecting the domestic and international sports betting and gaming industries each week throughout the year.
Penn Escapes ESPN Bet Pact
Rumors were rampant that Penn Entertainment and sports media giant ESPN would terminate their 10-year, $2 billion deal when the early returns of their collaborative effort, ESPN Bet, were more than a bit discouraging.
The escape clause was allowed following the first two years of the pact. Although many believed the end was nigh, few thought it would happen so suddenly.
As of December 1, 2025, ESPN Bet will cease operations under Penn Entertainment’s helmsmanship, and those customers will be integrated into Penn’s newest sports betting platform, theScore, a brand whose banner is flown in the Ontario, Canada, market.
PENN Entertainment President and CEO Jay Snowden released a statement that said, in part, “When we first announced our partnership with ESPN, 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. We plan 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.”
It is reported that ESPN Bet was expected to claim 20% of the mobile sports betting market when the deal was struck in August 2023. However, the reality is far more sobering, as it only managed about 3% of the market as of this writing.
DraftKings Leaps Into ESPN’s Arms
Nature abhors a vacuum, and in the ecosystem that is sports betting, that rule applied as Boston-based DraftKings immediately signed with ESPN as its official sportsbook. DraftKings will not operate as ESPN Bet, but instead, its brand and odds will permeate the ESPN digital presence.
Not so coincidentally, DraftKings will begin its deal with ESPN on December 1, 2025, the same day ESPN Bet will go dark.
The ESPN Bet brand will not completely vanish, as it will be used for content and not as a sports betting platform. Financial terms of the deal between DraftKings and ESPN were not disclosed.
