Copyright outkick
In news that will shock absolutely no one reading OutKick, ESPN is tapping out of the betting business. Not from making money off gambling, that’d be crazy, but by ending its 10-year, $2 billion partnership with Penn Entertainment, signed in 2023, effectively shutting down ESPN Bet. Some might speculate this move has to do with optics. After all, ESPN has broadcasting rights to NBA games, and the FBI arrested NBA players and coaches, and associates in four of the five Italian-American Mafia families for prop-bet manipulation and illegal poker games in late October. Together, ESPN and Penn created a truly unique offering with unparalleled integrations across our various media assets. ESPN drove over 2.9 million new users into the Penn ecosystem, with a strong uptick in first-time bettors this fall. We appreciate the collaboration we had with Penn and are now pursuing other media and marketing opportunities within this space. However, those people would be wrong. Like all things in life, money was the main factor for this decision. Disney's sports broadcaster rebounded immediately, signing a multi-year endorsement deal with DraftKings, whose market share, along with FanDuel, ESPN Bet, failed to eat into. ESPN's partnership with DraftKings begins December 1. This was Penn's second losing bet to become a prominent American sportsbook. Remember, Penn bought Barstool Sports and its sportsbook for roughly $550 million in February 2023, before selling it back to Barstool founder Dave Portnoy for $1 and partnering with ESPN later that year. As OutKick has chronicled since ESPN and Penn inked their agreement, ESPN Bet was always doomed. In July 2024, Penn laid off ESPN Bet employees after a poor second-quarter earnings report. When ESPN couldn't turn it around, we predicted in February that Penn might opt out of their deal in 2026. This is a reminder that not every big name can buy its way into sports betting, especially when it’s already dominated by sharper, faster players. Hopefully, the next deal ESPN signs is with YouTube TV, ending their costly dispute that's hurting fans and the company's bottom line. _____________________________ Follow me on X (or Twitter, whatever) @Geoffery-Clark, and check out my OutKick Bets Podcast for more betting content and random rants. Track my NFL 2025-26 bets here.
