- The ESPN Bet partnership between ESPN and PENN Entertainment will officially end on December 1, 2025.
- ESPN has reached a new multi-year exclusive deal with DraftKings as its official sportsbook and odds provider.
- PENN will pivot towards its iCasino and theScore Bet platforms after ending the ESPN licensing deal.
- ESPN Bet failed to reach the projected market share goal of (5%) leading to shift in strategy.
- DraftKings stock rose about (4%) following the announcement, while PENN Entertainment shares fell over (8%).
NEW YORK – In a major shake-up for the US sports betting market, Disney and PENN Entertainment announced that they will shut down ESPN Bet, ending their $1.5 billion licensing partnership just one year after its launch.
The closure takes effect on December 1.
The decision comes after ESPN Bet struggled to gain meaningful traction in a crowded USA online gambling market dominated by DraftKings and FanDuel. Industry data shows that the platform captured less than 5% of the US market share.
Under the new structure, ESPN will no longer operate its own sportsbook. Instead, DraftKings will become the new network’s exclusive provider of betting odds, integration, and sponsored content across ESPN’s television and digital platforms. For PENN Entertainment, the early termination allows the company to refocus resources on its theScore Bet brand and expanding its iCasino offerings.
Wall Street quickly reacted, “PENN’s shares fell more than 8%, while DraftKings gained roughly 4%,” on optimism that the expanded media partnership will strengthen its position as one of the leading sportsbooks in the United States.
The shutdown of ESPN Bet underscores the challenges of combining a traditional media giant with direct sportsbook operations. Major media networks are choosing to partner with established operators rather than run their own betting platforms.