Penn Entertainment has made the critical decision to terminate its 10-year, $1.5 billion partnership with ESPN, effectively bringing an end to the ESPN Bet sportsbook venture that launched over two years ago. This announcement was made during Penn’s quarterly earnings call on Thursday, marking the conclusion of what was initially one of the most promising endeavors in the rapidly growing US sports betting market.
The collaboration initially held significant potential. In August 2023, Penn rebranded its faltering Barstool Sportsbook into ESPN Bet, banking on the powerful influence of ESPN, the leading sports media brand, to transform it into a top-tier online sportsbook. Penn’s executives had set highly ambitious goals, targeting a 20% market share by 2027. Nonetheless, by the fall of 2025, ESPN Bet had only managed to capture 4.7% of the market share, a modest improvement over Barstool’s previous performance.
During the earnings call, Penn CEO Jay Snowden expressed his disappointment over the outcome. Although ESPN Bet could not compete at the level of other major sportsbooks, Snowden found a positive aspect in the situation. He emphasized that the development would allow Penn to simplify its cost structure by reducing fixed media expenditures and reallocating resources to its North American casino and iCasino businesses. “Although we made significant progress in improving our product offering and building a cohesive ecosystem with ESPN, we were unable to establish ESPN BET as a scale player,” he noted.
Jay Snowden further revealed that Penn plans to rebrand its US online sportsbook to theScore Bet, a brand already operating successfully in Ontario. This transition is expected to be completed by December 2025, aligning with Penn’s upcoming launch in Missouri. The US version of theScore Bet will integrate with Penn’s Hollywood Casino digital brand and theScore’s media app, which boasts approximately four million active monthly users.
For ESPN, the abrupt end of the partnership represents a sharp change in strategy. Just hours after Penn’s announcement, the media giant declared a new long-term partnership with DraftKings, which will become its official bookmaker. DraftKings is set to take charge of the betting tab within the ESPN app starting December 1. Consequently, the standalone ESPN Bet app will be discontinued on the same date.
Jimmy Pitaro, ESPN chairman, highlighted that ESPN’s marketing efforts had successfully attracted 2.9 million new users to Penn’s network. However, he admitted that these efforts did not translate into sustained market share due to low retention rates. Industry experts largely concur with this viewpoint, suggesting that despite ESPN’s brand strength, it never effectively converted to bettor loyalty. “We appreciate the collaboration we had with Penn and are now pursuing other media and marketing opportunities within this space,” Pitaro reflected.
Despite ESPN’s massive reach, it faced challenges in balancing its identity as a journalism entity with its foray into sports wagering. Tension intensified last month when the network reported on a federal gambling investigation involving prominent NBA figures, all while the ESPN Bet logo was displayed on air. This incident caused discomfort among executives, who feared that the association with gambling might undermine the network’s core brand identity.
The decision to partner with DraftKings suggests that ESPN seeks to refine its approach to sports wagering, focusing on leveraging a more established betting partner to improve market penetration without compromising its journalistic integrity. This move may also indicate a broader industry trend where media companies increasingly look for partnerships that align more closely with their brand values and long-term business strategies.
However, not everyone views Penn’s retreat from the ESPN partnership as an unequivocal setback. Some analysts argue that by cutting ties, Penn now has the opportunity to concentrate on its core strengths and pursue growth avenues that align more closely with its long-term vision. The rebranding to theScore Bet could allow Penn to tap into a fresh segment of the market and establish a more distinct identity in the competitive landscape of online sports betting.
Nonetheless, ESPN’s pivot to DraftKings illustrates a contrasting approach, where ESPN aims to enhance its role in the sports betting space through a strategic alignment with an industry leader. This partnership could potentially allow ESPN to offer a seamless and integrated betting experience to its vast audience, improving customer engagement and satisfaction.
As the industry continues to evolve, both Penn and ESPN will need to navigate the complexities of the sports betting landscape carefully. For Penn, the focus will be on leveraging theScore Bet’s brand potential while maintaining its momentum in other areas of its business. Meanwhile, ESPN’s new collaboration with DraftKings will require a delicate balance between expanding its wagering footprint and preserving its integrity as a trusted sports media outlet.
The unfolding developments in this space underscore the dynamic and rapidly changing nature of the sports betting industry, where strategic partnerships and brand positioning play crucial roles in determining success. Companies must remain agile and responsive to market trends and consumer preferences to thrive in this competitive environment. As these two giants chart their paths forward, the industry will be watching closely to see how their strategies unfold and impact the future of sports betting in the United States.
David Garato is a luminary in gaming journalism, renowned for peeling back the curtain on the gaming world with his witty and insightful commentary. A decade into weaving stories from the pixelated edges of indie games to the expansive universes of AAA titles, David’s work is a thrilling blend of analysis and adventure. When not writing, he’s live-streaming, sharing his gaming exploits with an engaged and growing audience. David doesn’t just write about games; he lives them, making him a trusted guide in the gaming community.
