Just two years after its splashy debut, the Espn Bet sportsbook is folding its cards. ESPN is now going all-in on a renewed, exclusive partnership with Draftkings, marking a significant pivot in the rapidly evolving world of sports wagering.
TL;DR- ESPN Bet, operated by Penn Entertainment, is shutting down on December 1, 2025, ending a 10-year, $2 billion deal after just two years.
- ESPN is returning to an exclusive partnership with DraftKings, which will now power all betting odds, content, and integrations across ESPN platforms.
- The move signifies ESPN Bet's struggle to gain significant market share against dominant players like DraftKings and FanDuel in the competitive U.S. sports betting landscape.
Imagine the biggest name in sports, a brand synonymous with athletic competition, launching its own betting platform. You'd expect it to dominate, right? Yet, in a surprising turn of events, ESPN Bet, the sportsbook born from a high-profile, $2 billion partnership between ESPN and Penn Entertainment, is calling it quits. Barely two years into a decade-long agreement, the plug is being pulled, and ESPN is making a swift return to a familiar partner: DraftKings.
This isn't just a corporate reshuffle; it's a stark reminder of the cutthroat nature of the legal sports betting market. Even with the formidable ESPN brand attached, gaining ground against established giants proved to be a monumental challenge. So, what exactly went wrong, and what does this mean for sports fans who love to place a wager?
A Partnership That Never Quite Hit the Jackpot in the Sports Betting Market
The original deal, announced with great fanfare in August 2023, was ambitious. Penn Entertainment agreed to pay ESPN $150 million annually for 10 years and grant warrants to purchase Penn common stock. In return, ESPN lent its iconic name and extensive marketing muscle to Penn's sportsbook, creating ESPN Bet. The goal? To carve out a significant slice of the U.S. online sports betting market, with Penn Entertainment and ESPN aiming for a 20% share by 2027. Source: [Eric Fisher and Ryan Glasspiegel, "ESPN Shutters Betting App and Pivots to DraftKings Deal," Sports Business Journal, Nov 6, 2025].
However, reality proved far tougher than projections. ESPN Bet's market share languished in the low single digits for most of its existence. Joe Pompliano, founder of Huddle Up, reported that ESPN Bet only managed a mere 3% of the U.S. online sports betting market, ranking it as the seventh or eighth most popular sportsbook. This was a far cry from the "podium position" Penn CEO Jay Snowden and ESPN chairman Jimmy Pitaro had hoped for. Source: [Sam Jane, "Why is ESPN Bet shuttering? What to know about the sportsbook’s ending," The Athletic, Nov 8, 2025].
Penn Entertainment's Repeated Unsuccessful Forays into Online Sports Betting
For Penn Entertainment, this isn't their first swing and a miss in the digital sports betting arena. Before ESPN Bet, Penn partnered with Barstool Sports, launching Barstool Sportsbook. That venture also ended poorly, with Penn infamously selling Barstool back to founder Dave Portnoy for a symbolic $1. Penn CEO Jay Snowden had explicitly stated he believed ESPN would provide a better chance to reach their 20% market share target. Source: [Peter Kafka, "ESPN's failed bet says everything about sports gambling in 2025," Business Insider, Nov 6, 2025].
This history highlights a crucial takeaway: simply attaching a popular media brand to a sportsbook isn't a magic bullet. Doug Kezirian, a former ESPN employee and sports betting analyst, described the ESPN-Penn deal as a "Hail Mary" for Penn, aiming to "pick up a bunch of market share with this huge audience" despite being "basically a terrible sportsbook." He suggested the deal was "doomed from the start."
"This was such a one-sided deal for ESPN. It was a Hail Mary for Penn, saying, 'Hey, we are basically a terrible sports book, and we have a chance to maybe just pick up a bunch of market share with this huge audience, and maybe we can figure out a way to just get a pipeline of new accounts and customer acquisition.'"
— Doug Kezirian, Former ESPN Employee and Sports Betting AnalystAnother significant factor was ESPN Bet's late arrival to the party. DraftKings and FanDuel had already established a powerful "duopoly," building massive user bases through daily fantasy contests even before widespread legalization of sports betting. Sports gambling analyst Dustin Gouker noted, "I think being late to the party was a big part (of the failure)." He emphasized that by the time ESPN and Penn struck their deal, "a lot of the hay was in the barn," meaning most of the readily available market share was already claimed. Source: [Sam Jane, "Why is ESPN Bet shuttering? What to know about the sportsbook’s ending," The Athletic, Nov 8, 2025].
The Return of a Familiar Partnership: ESPN and DraftKings Solidify
Effective December 1, 2025, ESPN is pivoting back to a large-scale, multiyear partnership with DraftKings. This isn't entirely new territory; ESPN and DraftKings had a similar agreement before the Penn deal in 2023. Now, DraftKings will become ESPN's exclusive sportsbook and odds provider, with a full rollout expected in 2026. This means DraftKings products, including its sportsbook, daily fantasy, and Pick6, will be "exclusively integrated across ESPN’s ecosystem."
For viewers, this translates to popular shows like "College Gameday" and "SportsCenter" showcasing DraftKings' odds. The betting tab within the ESPN app will also be powered by DraftKings. ESPN Chairman Jimmy Pitaro stated that this renewed tie-up will, in part, allow the network to "grow our ESPN direct-to-consumer business." DraftKings CEO Jason Robins called the deal a "natural fit," underscoring the companies' prior history.
Example: Imagine you're watching "SportsCenter" on a Monday night, and they're breaking down the odds for an upcoming NFL game. Previously, those odds would have been presented as "ESPN Bet Odds." Now, you'll see "DraftKings Odds" seamlessly integrated into the broadcast, and a quick tap on the ESPN app's betting tab will take you directly to DraftKings to place your wager, bypassing any separate ESPN Bet app entirely. This creates a far more direct and less confusing path for the user.
Addressing the Elephant in the Room: Optics and Broader Market Context
The timing of this split is interesting, coming shortly after news of an NBA gambling scandal involving players. While some might connect the dots, multiple reports confirm that ESPN's decision to end the Penn partnership was unrelated and had been in talks with DraftKings for months. However, no longer having the ESPN name directly on a betting app certainly improves optics for the brand, shielding it from potential fallout if the NBA case escalates. This is a clear trade-off: direct brand association with a betting operator for a buffer against potential controversy.
On the other hand, while Penn's digital betting ventures have struggled, it's crucial to recognize the strength of its core business. Penn Entertainment reported a net loss of $865.1 million in the third quarter of 2025, largely due to an $825 million impairment charge within its interactive division. Source: [Richard N. Velotta, "Southern Nevada’s hotel room inventory will climb... Penn Entertainment Inc. on Thursday reaffirmed the Dec. 1 tower opening," Las Vegas Review-Journal, Nov 6, 2025]. Yet, its retail casino properties generated $1.4 billion in revenue with a healthy adjusted EBITDAR margin of 32.8% in the same quarter. Source: [André Dubronski, "Chronicle Of A Divorce Foretold: PENN And Disney’s ESPN Cave To The FanDuel-DraftKings Power Duopoly," iGamingFuture, Nov 7, 2025]. This demonstrates that while its digital strategy faced hurdles, Penn's land-based casino empire remains a significant force.
Penn will now rebrand its U.S. sportsbook to theScore Bet, leveraging a name already successful in Canada and with over four million monthly users across North America. This shift allows Penn to realign its digital focus, integrating with its Hollywood-branded iCasino site where regulations permit. For them, the future is less about being an ESPN-branded sportsbook and more about building on their existing successful digital verticals and strong retail footprint.
What This Means for the Future of Sports Betting Content and Engagement
ESPN's pivot signals a mature phase in the U.S. sports betting market. The initial land grab is largely over, dominated by FanDuel and DraftKings. Brands entering late need a compelling product and a clear strategy beyond just marketing. For ESPN, its role as a "funnel" for bettors remains valuable, as sports gambling analyst Dustin Gouker noted, "Most people seem to agree ESPN still is a pretty good funnel." This new deal allows ESPN to continue serving its audience's interest in betting content while leaving the complex, high-risk operation of a sportsbook to a proven leader.
The ESPN Bet brand won't completely vanish; it will continue as a "sports betting content brand" with DraftKings Sportsbook integrations, anchored by ESPN's betting show, "ESPN Bet Live," and dedicated social and digital channels. This allows ESPN to maintain a presence in the betting content space without carrying the operational burden and financial risk of running the actual betting platform itself, a strategic shift that benefits both parties involved.
Practical Takeaways for Sports Fans and Bettors Navigating the Change
- Seamless Betting Experience: Expect a smoother, more integrated betting journey within ESPN's apps and broadcasts, all powered by DraftKings.
- DraftKings Dominance Solidified: This deal further entrenches DraftKings' position as a market leader, potentially offering more competitive odds and promotions directly via ESPN platforms.
- Penn's New Chapter: If you used the ESPN Bet app, your account will likely transition to theScore Bet, operated by Penn Entertainment, which will become their primary online sportsbook brand.
- Enhanced Content Integration: ESPN will continue to provide rich betting-related content, but the actual wagering will be handled by DraftKings, making it easier to find odds and place bets directly from your favorite sports news source.
ESPN is shaking up its sports betting strategy, ending its ESPN Bet partnership with Penn Entertainment and teaming up with DraftKings. Find out what this means for your sports viewing and betting habits.
FAQ: Your Quick Guide to the ESPN Bet Shutdown and DraftKings Shift
Sources:
- Sam Jane, "Why is ESPN Bet shuttering? What to know about the sportsbook’s ending," The Athletic, Nov 8, 2025. Link
- Eric Fisher and Ryan Glasspiegel, "ESPN Shutters Betting App and Pivots to DraftKings Deal," Sports Business Journal, Nov 6, 2025. Link
- Peter Kafka, "ESPN's failed bet says everything about sports gambling in 2025," Business Insider, Nov 6, 2025. Link
- Richard N. Velotta, "Southern Nevada’s hotel room inventory will climb... Penn Entertainment Inc. on Thursday reaffirmed the Dec. 1 tower opening," Las Vegas Review-Journal, Nov 6, 2025. Link
- André Dubronski, "Chronicle Of A Divorce Foretold: PENN And Disney’s ESPN Cave To The FanDuel-DraftKings Power Duopoly," iGamingFuture, Nov 7, 2025. Link