ESPN announced a significant pivot in its sports betting strategy Thursday, mutually agreeing to terminate its partnership with Penn Entertainment early, effectively shutting down its branded sportsbook, ESPN BET. Simultaneously, the sports media giant unveiled a new multiyear agreement naming DraftKings as its exclusive Official Sportsbook and Odds Provider.
The move marks a swift end to the highly publicized ESPN BET venture, which launched in November 2023 under a 10-year, $2 billion agreement with Penn Entertainment. The sportsbook struggled to gain significant market share against industry leaders DraftKings and FanDuel, a performance that reportedly led to the mutual decision to end the partnership two years into the deal.
The termination of the agreement with Penn Entertainment is effective Dec. 1, 2025.
DraftKings to Power ESPN’s Betting Ecosystem
Following the split, ESPN announced that DraftKings will take over as its exclusive sports betting partner.
Under the new agreement, DraftKings’ entertainment products—including its sportsbook, daily fantasy, and peer-to-peer games—will be exclusively integrated across ESPN’s vast digital and broadcast platforms, with a full rollout expected in 2026.
Key features of the DraftKings partnership:
- Exclusive Odds Provider: DraftKings will provide the official odds and lines integrated into ESPN’s live programming and digital content.
- App Integration: DraftKings will power the dedicated betting tab within the widely used ESPN app.
- Promotions: DraftKings customers will receive special promotions for ESPN Unlimited, the network’s newly launched direct-to-consumer streaming product.
“Our betting approach has focused on offering an integrated experience within our products,” said ESPN Chairman Jimmy Pitaro in a statement. “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.”
Penn Entertainment’s CEO and President Jay Snowden said that while significant progress was made, the parties “have mutually and amicably agreed to wind down our collaboration,” allowing Penn to refocus its digital strategy on its iCasino business. Penn will rebrand its U.S. online sportsbook to theScore Bet.
DraftKings, which previously had a similar agreement with ESPN prior to the Penn deal, said the renewed collaboration was a “natural fit,” citing ESPN’s “unmatched visibility” across the world of sports.
