ESPN, PENN Entertainment end sports betting partnership early in shock announcement
The companies' deal was reportedly worth $2 billion
NFL reaches deal to acquire 10% stake in ESPN
ESPN and the NFL announced a deal Tuesday, granting ESPN the league's media assets including NFL Network. The NFL will retain a 10% ownership share of the network.
PENN Entertainment and ESPN mutually agreed to terminate their U.S. sports betting contract on Thursday.
PENN and ESPN announced the decision in a joint statement. The early termination of their agreement will be effective on Dec. 1.
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An interior view of the Super Bowl LVIII betting odds video board at a sports book. (Aaron M. Sprecher / Getty Images)
"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," PENN Entertainment President and CEO Jay Snowden said in a statement. "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.
"Looking ahead, we plan to rebrand our OSB offering in the U.S. to theScore Bet®, with a target date of December 1, 2025 to coincide with the expected launch of sports betting in Missouri, subject to regulatory approvals. We currently operate theScore Bet brand in Ontario, and our OSB product across both the U.S. and Canada will now leverage connectivity with the theScore media app, which has approximately 4 million monthly active users across North America. Our OSB offerings will continue to provide a top of funnel cross-sell opportunity for our Hollywood-branded iCasino, which will remain integrated into our OSB product offering in states where legal, in addition to serving as a standalone iCasino app."
A detail view of an ESPN Bet Sportsbook logo before the NFC wild-card playoff game between the Minnesota Vikings and the Los Angeles Rams at State Farm Stadium on Jan. 13, 2025, in Glendale, Arizona. (Ric Tapia / Getty Images)
ESPN RADIO HOST CALLS OUT BROWNS AS ROOKIE SHEDEUR SANDERS REMAINS BENCHED
ESPN officially launched into the sports betting realm in August 2023 with its PENN Entertainment partnership. Thus, ESPN Bet was born. The deal was reportedly worth $2 billion.
It also allowed Barstool Sports founder Dave Portnoy to buy back his company.
However, the rise of sports gambling and its real-world implications among athletes have created consternation in the sports world. Additionally, ESPN is set to own and operate NFL RedZone and other NFL media in exchange for a 10% stake in the company, which has since raised ethical red flags.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 110.73 | +0.24 | +0.22% |
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PENN | PENN ENTERTAINMENT INC. | 14.54 | -0.11 | -0.75% |
"Together, ESPN and PENN created a truly unique offering with unparalleled integrations across our various media assets," ESPN chairman Jimmy Pitaro said in a statement. "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."
ESPN president Jimmy Pitaro arrives on the red carpet before the ESPYs at the Dolby Theatre on July 12, 2024. (Kirby Lee/USA Today Sports / IMAGN)
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The companies said all outstanding payments to ESPN will come to a halt in the fourth quarter of 2025. ESPN will help PENN facilitate its transition to theScore Bet.