ESPN announced it will terminate its sports‑betting partnership with Penn Entertainment and will partner with DraftKings as the exclusive sportsbook and odds provider, effective December 1, 2025. The move follows ESPN Bet’s underperformance, capturing roughly 2.6‑3% of the U.S. sports‑betting market and falling short of the partnership’s 10‑20% market‑share target.
Under the new agreement, DraftKings will power ESPN’s betting tab on the ESPN app and website and will promote ESPN’s newly launched direct‑to‑consumer streaming service, ESPN, to its customers. DraftKings’ existing 28% share of the U.S. sportsbook market positions it to give ESPN a stronger competitive foothold.
Penn Entertainment will rebrand the ESPN Bet app to theScore Bet on December 1, 2025, and will take an $825 million write‑down to account for the loss of the ESPN partnership. The original 10‑year deal was valued at about $2 billion, with Penn paying $150 million annually.
The partnership change follows Penn’s earlier exit from a Barstool Sportsbook venture, underscoring the company’s struggle to translate media brand alliances into profitable betting operations. Penn’s Q3 2025 results showed total revenue of $1.72 billion, up 5% from the prior year, but the interactive division’s performance lagged, contributing to the write‑down.
DraftKings’ Q3 2025 financials, released on the same day, reported revenue of $1.144 billion, a 4% year‑over‑year increase, and an EPS of –$0.26, beating the consensus estimate of –$0.32. The company’s guidance for fiscal 2025 was revised to $5.9 billion–$6.1 billion in revenue, below the prior $6.19 billion estimate, reflecting cautious outlook amid competitive pressure.
Management comments highlight the strategic fit: ESPN chairman Jimmy Pitaro said the partnership would “super‑serve passionate sports fans and grow ESPN’s direct‑to‑consumer business.” DraftKings CEO Jason Robins called the deal a “natural fit” and emphasized ESPN’s visibility as a premier partner. Penn CEO Jay Snowden noted the company would refocus on its iCasino and Canadian operations.
The announcement is expected to strengthen ESPN’s position in the rapidly expanding sports‑betting market, where FanDuel and DraftKings together command over 70% of the handle. By aligning with DraftKings, ESPN can leverage advanced technology, brand recognition, and a large user base to accelerate growth in its streaming and betting ecosystems.
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