ESPN Switches to DraftKings for Sports Betting
Disney-owned ESPN is ending its sports betting partnership with Penn Entertainment (PENN) years earlier than planned, replacing it with a new agreement that makes DraftKings (DKNG) the network’s exclusive sportsbook and odds provider. Both transitions take effect in December.
The partnership gives DraftKings full integration into ESPN’s platforms, including powering the network’s mobile betting tab. The deal positions DraftKings as the core betting technology and data provider across ESPN’s media ecosystem — a major step for both companies as sports wagering continues to expand across the U.S.
The move also strengthens ESPN’s direct-to-consumer strategy, as sports betting has become an increasingly important part of its streaming and fan engagement model.
Penn and ESPN End Partnership Early
ESPN and Penn agreed to wind down their partnership two years into what was originally a 10-year, $1.5 billion deal. Under the initial terms, Penn paid ESPN $150 million per year and granted the network $500 million in stock warrants. The deal had included performance thresholds that allowed either party to exit early if market share targets weren’t met.
Penn’s sportsbook, which was rebranded as ESPN Bet under the agreement, will now revert to the theScore Bet brand. The company said it made progress in improving its technology and user experience but agreed with ESPN that ending the collaboration was the best path forward.
All financial obligations — including ESPN’s annual cash payments and stock warrants — will end in the fourth quarter.
DraftKings Expands Media Footprint
The new deal marks a significant win for DraftKings, which continues to consolidate its position among top U.S. sportsbook operators alongside FanDuel and BetMGM.
The partnership gives DraftKings unmatched exposure across ESPN’s broadcast, digital, and streaming platforms — including the network’s high-profile sports coverage, fantasy content, and live event integrations.
The collaboration is expected to enhance ESPN’s betting visibility while driving customer acquisition for DraftKings, which will now power betting lines, integrations, and real-time odds across ESPN programming.
WSA Take
DraftKings’ deal with ESPN reshapes the competitive landscape of U.S. sports betting and further intertwines major media networks with sportsbook operators. The move strengthens both brands while Penn pivots back to building its own ecosystem under theScore Bet.
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