Key Points
- ESPN Bet is winding down after the network ended its 10-year deal with Penn Entertainment earlier than expected.
- Starting in December, ESPN will lean on DraftKings as its official sports wagering partner.
- DraftKings will integrate its sportsbook into the ESPN website and mobile apps, and the two companies will collaborate on social media and TV programming initiatives.
Disney’s big bet on crafting its own ESPN sports wagering brand did not pay off.
After two years of developing ESPN Bet with partner Penn Entertainment, the company is throwing in the towel on the arrangement, opting instead to move forward with an arrangement that will see sports wavering service DraftKings serve as the exclusive betting partner of the sports network.
The DraftKings deal starts in December, ESPN said in an announcement on Thursday. The arrangement will see ESPN integrate DraftKings’ sportsbook into the ESPN website and mobile apps, with a full rollout expected next yaear.
Financial terms of the partnership were not disclosed. ESPN’s prior partnership with Penn Entertainment was valued at $2 billion over a 10-year term. The network’s partnership with Penn Entertainment was “mutually and amicably” ended, both companies said.
“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 CEO Jay Snowden said on Thursday “Although we made significant progress, we have mutually agreed to wind down our collaboration.”
Snowden said the partnership’s end will allow the company to focus more on its growing gambling business called iCasino.
The new partnership with DraftKings will bring ESPN’s betting presence fully in-house through its digital platforms. DraftKings will power the betting tab within the redesigned ESPN app and integrate its sportsbook, daily fantasy and Pick 6 offerings. Customers will also receive promotional access to ESPN Unlimited, the network’s forthcoming direct-to-consumer product, the companies announced.
“Our betting approach has focused on offering an integrated experience within our products,” said Jimmy Pitaro, the Chairman of ESPN. “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.”
DraftKings Chief Executive Officer Jason Robins called the collaboration “a natural fit,” citing ESPN’s global visibility and storytelling capabilities.
“Together, we’re delivering a seamless, engaging and responsible experience that elevates how fans connect with live sports,” he said.
As part of the transition, ESPN Bet will shift from a standalone wagering platform to a content and programming brand anchored by the daily show “ESPN Bet Live” on ESPN 2 and corresponding social channels. It wasn’t clear if the name of the show will change, in light of the fact that ESPN Bet is winding down next month.
DraftKings currently operates in 28 U.S. states, Washington D.C. and Ontario, Canada, with more than 10 million customers.
ESPN is operated as a joint venture between Disney and Hearst Corporation, with Disney owning a majority stake in the business.
