ESPN’s betting playbook has flipped to a new page. After two years, ESPN and PENN Entertainment are agreeing to an early termination of their U.S. online sports betting partnership (effective December 1, 2025). Simultaneously, ESPN has announced a new, multi-year exclusive deal with DraftKings, shifting the network’s wagering future from one big partner to another.
The PENN–ESPN relationship that launched ESPN Bet in 2023 is being wound down by mutual agreement, with the termination set to take effect December 1, 2025. Under the original deal announced in August 2023, PENN committed large sums and equity upside to Disney/ESPN in a long-term pact aimed at creating ESPN Bet. The original deal included $1.5 billion in cash to Disney over 10 years (and additional warrants), illustrating how serious ESPN was about entering the online sports betting market. PENN’s leadership says the company will refocus on its iCasino business and rebrand its U.S. OSB offering to theScore Bet.
CEO and President of PENN Entertainment Jay Snowden stated the targeted December 1 rebrand and relaunch to theScore Bet will coincide with the expected launch of sports betting in Missouri (upon regulatory approval).
“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 refocus our digital strategy on our growing iCasino business, while continuing to capitalize on our omnichannel advantage as the nation’s leading regional retail casino operator.”
“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,” said Chairman of ESPN Jimmy Pitaro,
ESPN DTC Enters A New Era with DraftKings
Effective on the first of next month, ESPN enters a new exclusive multi-year agreement with DraftKings. The gambling company will be the “Official Sportsbook and Odds Provider of ESPN,” and will integrate its betting and fantasy products across ESPN’s ecosystem. A full rollout is expected in 2026, and DraftKings will power the betting tab inside the ESPN app and bring offerings like DraftKings’ sportsbook, daily fantasy, and Pick6 to fans at launch.
Under the new arrangement, ESPN BET will shift away from being a standalone sportsbook brand and toward being ESPN’s sports-betting content brand, featuring a hub of betting coverage, tools, and programming (anchored by shows like ESPN BET Live), with DraftKings powering the transactional side.
“ESPN’s unmatched visibility across the world of sports make this collaboration a natural fit,” said Jason Robins, CEO and Co-Founder of DraftKings. “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. Together, we’re delivering a seamless, engaging, and responsible experience that elevates how fans connect with live sports.”
With DraftKings powering the betting tab, customers will receive special promotions for ESPN Unlimited. The move sparks a richer, more integrated betting layer inside the DTC product, using DraftKings technology for a seamless, deeper betting experience. Beyond cross-promotional offers tied to ESPN’s DTC app, the partnership tightly ties live sports, streaming, and betting together with in-app promotions and responsible-gaming assets.
“Our betting approach has focused on offering an integrated experience within our products,” said Pitaro. “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. We are excited about this new collaboration with DraftKings.”
When the PENN-branded era formally winds down and DraftKings begins its exclusive integrations on December 1, ESPN app users should expect a period of transitions, promotional offers, and product rollouts into 2026.