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ESPN Bet shutting down amid new DraftKings deal? Here's what we know
Penn Entertainment ended its $1.5B deal with ESPN, rebranding ESPN Bet as The ScoreBet. Users must withdraw funds and close accounts by Dec 1.
Betting platform ESPN Bet, the collaborative offering between the Disney-owned sports broadcaster ESPN and Penn Entertainment, is set to be rebranded as The ScoreBet after the tie-up between the two fell through.
On Thursday, Penn Entertainment announced that they are ending the 10-year, $1.5 billion deal with ESPN, which was followed by ESPN announcing a new deal with sports betting company DraftKings Sportsbook. The deal would mean a complete end of ESPN and Penn Entertainment's platform, ESPN Bet.
It means those who have an account and deposit on ESPN Bet will have to withdraw and close their accounts by December 1. When The ScoreBet platform is launched, they will have to sign up and activate their account all over again.
“Our betting approach has focused on offering an integrated experience within our products,” ESPN Chairman Jimmy Pitaro said in a statement. “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."
Why Did ESPN's Deal With Penn Entertainment Fall Through
The deal between ESPN- worth $1.5 billion and running through 10 years to 2033, was signed in 2023. However, just about two years into the deal, it fell through due to a lack of profitability for both sides.
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“We will operate with a more efficient cost structure, including replacing fixed media spending … the realignment will free up resources to strategically invest in the North American markets,” Penn Entertainment said in a statement.
By 2025, Penn Entertainment had captured just 4.7% of the North American betting market—only a slight rise from Barstool Sportsbook’s 2.2%. To contrast how low it is based on Penn's estimate, the company had set a target of 20% of the North American market by 2027.
“Although we made significant progress in improving our product offering and building a cohesive ecosystem with ESPN, we were unable to establish ESPN BET as a scale player,” Penn CEO Jay Snowden reportedly said at earnings call on Thursday.
