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ESPN is making a major shift in its sports betting strategy, ending its partnership with PENN Entertainment and launching a new long-term deal with DraftKings, they announced Thursday. The move comes less than two years after ESPN and PENN signed a 10-year, $2 billion agreement to launch ESPN BET, an ambitious attempt to merge the network’s media reach with PENN’s gaming expertise. But despite initial momentum, the platform struggled to gain significant market share. On Thursday, both companies confirmed that ESPN BET will officially shut down next month, leaving eight years remaining on the original contract. PENN Entertainment president and CEO Jay Snowden described the decision as mutual and forward-looking. “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,” Snowden said in a statement. “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.” With PENN pivoting, ESPN is turning to DraftKings as its new exclusive sports betting partner under a multi-year agreement that begins Dec. 1, 2025. The deal designates DraftKings as ESPN’s exclusive official sportsbook and odds provider and will integrate the company’s sportsbook, daily fantasy, and Pick6 products across ESPN’s platforms. A full rollout is expected in 2026, with DraftKings also powering the betting tab within the ESPN app. “Our betting approach has focused on offering an integrated experience within our products,” said Jimmy Pitaro, chairman of ESPN. “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.” The agreement will rebrand ESPN BET into a sports betting content vertical featuring DraftKings Sportsbook integrations. The network’s daily betting program, “ESPN BET Live,” currently airing on ESPN2, will continue as the anchor of the brand’s betting coverage. “As an innovative leader in digital sports entertainment, DraftKings is uniquely positioned to integrate our technology and products with ESPN’s iconic brand and storytelling power,” said Jason Robins, CEO and co-founder of DraftKings. Both companies also plan to collaborate on campaigns promoting responsible gaming and education as part of the partnership. The new alliance marks the end of ESPN’s short-lived foray into operating its own branded sportsbook — and a return to a more integrated content and technology-driven betting approach alongside one of the industry’s biggest players.
