ESPN Shifts Betting Focus to DraftKings After Penn Entertainment Deal Collapses
A major realignment in the sports betting landscape is underway as ESPN ends its partnership with Penn Entertainment and forges a new alliance with DraftKings Sportsbook. The move comes after a disappointing run with penn,marked by notable financial investment and limited market share gains.
Penn Entertainment Exits ESPN Bet, Citing cost Efficiency
Penn Entertainment announced on Thursday that it is terminating its 10-year, $1.5 billion sports betting partnership with ESPN. According to a company release,the decision is driven by a desire to streamline operations and strategically reinvest in north American markets. “We will operate with a more efficient cost structure, including replacing fixed media spending,” the statement read, “The realignment will free up resources to strategically invest in the North American markets.”
The partnership, launched in August 2023 with the creation of ESPN Bet, aimed to capitalize on the growing popularity of online sports betting. Though, the venture failed to meet expectations. Over $300 million was transferred from Penn to ESPN during the partnership, yet the results were largely unfavorable in terms of capturing a significant share of the market.
Did you know? – ESPN Bet launched in August 2023, aiming to leverage ESPN’s brand. Penn Entertainment invested heavily, transferring over $300 million. The partnership’s failure to gain significant market share led to its early termination.
Market Share Disappointment Fuels the Shift
Penn publicly set a goal of achieving 20% market share in the U.S. online sports betting market by 2027. However, as of 2025, the company had onyl managed to secure 4.7% of the market – a marginal improvement from the 2.2% held by Barstool Sportsbook when it was partnered with penn. This underperformance ultimately led to the dissolution of the agreement.
Reader question: – Do you think ESPN’s new partnership with DraftKings will be more successful? What factors might contribute to its success or failure compared to the Penn Entertainment deal? Share your thoughts.
DraftKings and ESPN: A New era of Sports Betting Integration
The new partnership between ESPN and DraftKings is set to launch on December 1. ESPN Chairman Jimmy Pitaro expressed enthusiasm for the collaboration, stating, “Our betting approach has focused on offering an integrated experience within our products.” he continued, “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.”
Pro tip: – Keep an eye on how ESPN integrates DraftKings into its programming. Look for seamless betting experiences within ESPN’s apps and broadcasts. This integration is key to the new partnership’s success.
this strategic shift signals a renewed focus on leveraging DraftKings’ established position in the sports betting industry to enhance ESPN’s offerings and reach a wider audience. The implications of this partnership for the competitive landscape of online sports betting remain to be seen, and further details are expected during Penn’s upcoming earnings call.
