BREAKING: In a stunning turn of events, ESPN has just announced its split from PENN Entertainment, paving the way for a new multiyear deal with sportsbook DraftKings. This dramatic shift comes less than an hour after the termination of their $2 billion sports betting agreement originally signed in 2023.
The joint statement released today confirms that ESPN and PENN mutually agreed to end their decade-long partnership, which had aimed to leverage ESPN’s brand through the ESPN Bet app. However, both companies acknowledged that the venture failed to meet key performance benchmarks, necessitating its conclusion.
As of December 1, 2023, DraftKings will take over as the exclusive sportsbook and odds provider for ESPN. This collaboration is set to fully integrate DraftKings’ offerings into the ESPN platform, including features like “sportsbook, daily fantasy, and DraftKings Pick6,” with a complete rollout expected by 2026.
“We are excited about this new collaboration with DraftKings,” said Jimmy Pitaro, ESPN Chairman. “Working with a leader in the space will enhance our offerings and further serve our passionate sports fan base.”
The former ESPN Bet platform will now transition to become a sports betting content brand, featuring DraftKings Sportsbook integrations. ESPN’s betting show, ESPN BET Live, currently airing weekdays at 6:30 p.m. ET on ESPN2, will serve as a cornerstone for this new direction.
DraftKings currently operates in 28 states and Washington, D.C., positioning itself as a key player in a highly competitive sports betting landscape dominated by companies like FanDuel, MGM, and Caesars.
The announcement comes at a precarious time for the sports betting industry, which is facing increased scrutiny following the recent arrest of Miami Heat guard Terry Rozier for alleged point shaving—an incident that casts a shadow over the integrity of sports betting.
As this story continues to develop, sports enthusiasts and bettors alike will be closely watching how ESPN and DraftKings implement this new partnership. Key updates regarding product integrations and changes within the ESPN app are anticipated shortly.
Stay tuned for more details as they emerge from this significant shift in the sports betting arena.
