ESPN BET Sportsbook is Going Away - Here's Why

ESPN BET is making a change — and betting on a new proverbial horse.

What's Happening (Part 1):

• PENN Entertainment and ESPN have announced that they intend to terminate their exclusive online sports betting agreement early, saying that the decision is mutual.
• The termination will be effective as of December 1, 2025.
• When the deal between PENN and ESPN was announced more than two years ago, it included payments of $150 million per year to ESPN (along with warrants to purchase common stock of PENN) in exchange for the exclusive rights to the ESPN BET trademark, marketing services, and more.
• These payments will cease in the fourth quarter of 2025.
• While the agreement was originally for 10 years, it did have a specific clause that either party could terminate after the third year if certain market share performance thresholds were not met.
• In light of the termination, ESPN BET will be transitioned to theScore Bet.
• PENN has a target launch date of December 1 for theScore (which coincided with legalized sports betting reaching Missouri).

What's Happening (Part 2):

• With the termination of the Penn deal, the network has now named DraftKings the exclusive Official Sportsbook and Odds Provider of ESPN.
• This will be effective on December 1.
• In this case, ESPN BET will be used as a content brand that will have DraftKings Sportsbook integrations. ESPN BET Live will also continue, with DraftKings as the new featured sportsbook.
• While the integration of DraftKings entertainment products into the ESPN ecosystem will begin next month, a full rollout is expected in 2026.
• DraftKings and ESPN also say that they'll collaborate to advance their commitment to responsible gaming by educating and raising customer awareness as well as promoting responsible play through campaigns and integrations.
• Incidentally, Disney previously owned a share of DraftKings (which it acquired during the purchase of 21st Century Fox assets), but sold it upon sealing a deal with PENN.

What They're Saying:

• Jimmy Pitaro, Chairman of ESPN, on the Termination of the PENN deal: "Together, ESPN and PENN created a truly unique offering with unparalleled integrations across our various media assets. 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.”
• Jay Snowden, CEO and President of PENN Entertainment: "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."
• Pitaro on the DraftKings partnership: "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."
• Jason Robins, CEO and Co-Founder of DraftKings: "ESPN’s unmatched visibility across the world of sports make this collaboration a natural fit. 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.”

A Bad Look?

• While it's not mentioned by ESPN, in my opinion, it's hard not to think of the recent NBA gambling scandal when hearing this news.
• Recently, clips of ESPN pulling down the ESPN Bet banner while discussing topics such as an NBA player allegedly faking injuries to impact wagers have gone viral.

• In my mind, it seems possible that, even before this latest story, ESPN and Disney were growing increasingly uncomfortable with the arrangement of actually having a sportsbook with the network's name on it.
• After all, Bob Iger had previously declared that The Walt Disney Company wasn't interested in sports betting.
• At least with this DraftKings deal, there's a bit more separation.
• Of course, that's all just my opinion.