Penn Ends $1.5B ESPN Partnership; ESPN Bet to Shut Down
URGENT UPDATE: Penn Entertainment has just announced its exit from a $1.5 billion partnership with ESPN, signaling the end of the ESPN Bet project launched just over two years ago. This decision, revealed during Penn’s quarterly earnings call on Thursday, marks a significant shift in the landscape of US sports betting.
The partnership, initially designed to capitalize on the booming sports betting market, failed to meet expectations. Despite rebranding its struggling Barstool Sportsbook into ESPN Bet in August 2023, Penn only captured 4.7% of the market by fall 2025, far short of its ambitious target of 20% market share by 2027.
Penn CEO Jay Snowden expressed disappointment over the outcome, stating, “While 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.” This withdrawal allows Penn to streamline its operations, cutting fixed media spending to focus on its North American casino and iCasino businesses.
As part of this transition, Penn plans to rebrand its US online sportsbook to theScore Bet, which it has successfully operated in Ontario. These changes are set to be finalized by December 2025, coinciding with the launch in Missouri. TheScore Bet will integrate with Penn’s Hollywood Casino digital brand and leverage theScore’s media app, boasting approximately four million active monthly users.
In a rapid pivot, ESPN has already confirmed a new long-term partnership with DraftKings, which will become its official bookmaker. Starting December 1, 2025, DraftKings will take over betting operations within the ESPN app, leading to the shutdown of the standalone ESPN Bet app.
ESPN Chairman Jimmy Pitaro noted the collaboration brought in 2.9 million new customers to Penn’s network but admitted that customer retention did not meet expectations. “We appreciate the collaboration we had with Penn and are now pursuing other media and marketing opportunities within this space,” Pitaro stated.
The fallout from this partnership raises questions about ESPN’s brand identity amid the increasing scrutiny of sports wagering. The network faced criticism last month when it covered a federal gambling probe involving prominent NBA figures while its ESPN Bet logo remained visible, creating discomfort among executives concerned about potential brand erosion.
As the sports betting industry continues to evolve, the implications of this partnership dissolution will be closely monitored. What happens next? Industry experts will be watching how Penn’s rebranding efforts and ESPN’s new direction with DraftKings unfold in the coming months. Stay tuned for more developments as this story progresses.
