Copyright Mechanicsburg Patriot News
Penn Entertainment, the Berks County-based casino and racetrack operator formerly known as Penn National, has announced it will part ways with sports media giant, ESPN. The two companies have an online sports betting agreement, but Penn Entertainment announced on Thursday morning that the companies have mutually agreed upon an early termination of the agreement. The partnership will end on Dec. 1. Under the terms of the original agreement announced in August 2023, ESPN agreed to provide Penn Entertainment with media, marketing services, and the exclusive right to the ESPN Bet trademark for online sports betting in the United States in exchange for $150 million per year in cash payments to ESPN and warrants to purchase common stock of Penn Entertainment. The agreement had an initial term of 10 years, with the right for either party to terminate the deal after the third year if specific market share performance thresholds were not met. “When we first announced our partnership with ESPN, both sides made it clear that we expected to compete for a podium position in the space,” Jay Snowden, president and CEO of Penn Entertainment, said in a news release. “Although we made significant progress in improving our product offering and building a cohesive ecosystem with ESPN, we have mutually and amicably agreed to wind down our collaboration. We plan to realign our digital focus on our growing iCasino business, while continuing to capitalize on our omnichannel advantage as the nation’s leading regional retail casino operator.” Snowden has said previously that the partnership was meeting the company’s expectations. The company will rebrand its online sports betting business in the U.S. to theScore Bet, with a target date of December 1 to coincide with the expected launch of sports betting in Missouri, subject to regulatory approvals. Penn Entertainment operates theScore Bet brand in Ontario. Jimmy Pitaro, chairman of ESPN, said ESPN drove more than 2.9 million new users to Penn Entertainment. ESPN will work with Penn Entertainment to facilitate a transition from ESPN Bet to theScore Bet. Penn Entertainment said it will continue to be an ESPN advertising client. This isn’t the first time Penn Entertainment’s bet on a sports company didn’t go as planned. After buying 100% of Barstool Sports for hundreds of millions of dollars, Penn Entertainment sold it back to Barstool Sports’ Dave Portnoy for $1. Penn Entertainment’s partnership with Barstool lasted a little more than three years. After Penn Entertainment parted ways with Barstool, it rebranded its interactive gaming component as ESPN Bet. The deal with ESPN went into effect on Aug. 8, 2023. In January, the sportsbooks at Hollywood Casino at Penn National Race Track in East Hanover Township and at Hollywood Casino York in Springettsbury Township, York County, were rebranded.
