ESPN Ditches Penn Entertainment, Teams Up with DraftKings for Betting Future

A major shift in the sports betting landscape is underway as ESPN ends its short-lived partnership with Penn Entertainment and brings DraftKings on board as its new official odds provider.

TL;DR: Quick Hits on the Sports Betting Shake-Up

• ESPN Bet, the sports betting platform in partnership with Penn Entertainment, is shutting down on December 1, 2025, after failing to gain significant market share.
• DraftKings is stepping in as ESPN's new official sportsbook and odds provider, integrating across ESPN's digital platforms starting in December.
• Penn Entertainment incurred over $1.5 billion in losses from its sports betting ventures and will now refocus its digital strategy on its iCasino business.

Picture this: a massive, multi-billion dollar partnership between a sports media giant and a gambling operator, launched with big ambitions. Now, picture it fizzling out in just over two years. That's the story of Espn Bet and Penn Entertainment, a saga that underscores the brutal realities of the booming online sports betting market.

But as one door closes, another, more familiar one, swings open. ESPN is now teaming up with DraftKings, one of the undisputed heavyweights in the industry, for its future betting integrations. This move signals a significant realignment in how a major sports broadcaster approaches the ever-present world of wagering.

The Short, Unsweet History of ESPN Bet and Penn's Costly Gamble

When ESPN and Penn Entertainment first announced their ambitious partnership in August 2023, it was hailed by many as a potential game-changer. The deal, valued at $2 billion over 10 years, granted Penn the exclusive right to use ESPN's iconic brand for its sportsbook, along with extensive media and marketing services. This included an annual $150 million cash payment to ESPN, plus warrants for Penn common stock. It was Penn's second major attempt to crack the lucrative online sports betting market, following a previous, also costly, venture with Barstool Sports. (Source: Bloomberg, Tony Maglio/The Wrap, Sportico, CNBC)

Penn had previously invested $551 million to acquire Barstool Sports in 2020, only to sell it back to founder Dave Portnoy for a symbolic $1 in 2023, incurring a massive $923.2 million loss on disposal. The hope was that the ESPN brand would provide the necessary gravitas to compete with the industry's titans. (Source: Sportico, Joe Pompliano/Huddle Up)

Despite the enormous investment and ESPN's unparalleled reach, ESPN Bet struggled significantly. It consistently held a market share of less than 3% in the US mobile sports betting market, according to independent analyst Alfonso Straffon, and was tied for a distant sixth with 3.2% of the handle in the 14 states reporting individual sportsbook figures. This performance was far short of the "podium position" (top three) both companies had aimed for. (Source: Alfonso Straffon via Bloomberg, state regulators via Sports Business Journal)

Unpacking the Reasons Behind the Rapid Exit from ESPN Bet

So, what exactly went wrong? The core issue wasn't a lack of trying, but rather the sheer dominance of established players. The sports betting market, valued at $13.7 billion, is a tough nut to crack. It's largely controlled by a powerful duopoly: DraftKings and FanDuel, which together command roughly two-thirds of the US market. These two companies had a significant head start, having converted millions of daily fantasy sports users into sports bettors after the Supreme Court opened the floodgates in 2018. ESPN Bet, a relatively late entry, simply couldn't loosen their grip. (Source: Business Insider, Mike Florio/Pro Football Talk, Bloomberg)

It's easy to look at the recent NBA gambling scandal, where players and coaches faced federal probes, and assume it was the final straw. ESPN found itself in an awkward position, covering the scandal while its own betting chyron ran across screens. However, both ESPN and Penn explicitly stated that the decision to terminate the partnership was based solely on market share performance, not external factors like the NBA controversy. The financial realities, not public perception of gambling ethics, drove this outcome. (Source: The Wrap, Deadline)

Some, including former ESPN executive Mark Shapiro, also criticized the network's increasing volume of betting-focused content, calling it "bad programming" and a "total turnoff" for general sports fans. Shapiro questioned the constant integration of props and parlays into shows like 'Get Up,' suggesting it alienated a significant portion of the audience who weren't tuning in specifically for betting tips. While ESPN Chairman Jimmy Pitaro highlighted that ESPN drove 2.9 million new users into Penn's ecosystem, the stickiness and conversion to active bettors didn't meet the high financial thresholds. (Source: Sports Business Journal, The Wrap)

Imagine Sarah, a casual sports fan who tuned into ESPN's 'Get Up' every morning. She'd hear the betting talk, see the odds, but when she tried ESPN Bet, she found the app clunky compared to her friend's go-to. She quickly reverted to a more established platform. This scenario, multiplied by millions, illustrates the challenge ESPN Bet faced: even a powerful brand couldn't easily overcome the inertia of existing user preferences and a superior product offering from market leaders.

DraftKings Steps Up: A New Era for ESPN's Betting Integration

Effective December 1, 2025, DraftKings will officially take over as ESPN's "Official Sportsbook and Odds Provider." This isn't a co-branded sportsbook like ESPN Bet; instead, it's a more traditional, yet deeply integrated, marketing partnership. DraftKings will power the betting tab within the ESPN app and be woven into ESPN's platforms, with a full rollout expected throughout 2026. This means ESPN will direct its massive audience to DraftKings' established products, leveraging the existing user base of over 10 million customers across 28 states, Washington D.C., and Ontario, Canada. (Source: ESPN Press Release, Bloomberg, Sportico)

ESPN Chairman Jimmy Pitaro expressed optimism for this new collaboration, stating that it will allow them "to build upon that foundation, continue to super-serve passionate sports fans and grow our ESPN direct-to-consumer business." DraftKings CEO Jason Robins added, "ESPN's unmatched visibility across the world of sports make this collaboration a natural fit." Both companies have also committed to collaborating on responsible gaming initiatives, promoting safe play through various campaigns and integrations. (Source: ESPN Press Release)

The Enduring Lessons from This Major Shift in Sports Betting's Future

For Penn Entertainment, this marks a significant, albeit costly, pivot. The company recorded an $825 million impairment charge in its interactive business in the third quarter alone and has committed over $4.3 billion of shareholder capital to online sports betting since 2020. (Source: Bloomberg, Sportico)

"We had aspirations, we had goals to be a podium player, it didn’t work out. We’re moving on from that. And they are too."

— Jay Snowden, CEO and President of Penn Entertainment (Source: Bloomberg, The Wrap)

Penn will now rebrand its sportsbook to theScore Bet, focusing its digital strategy on its "growing iCasino business" and leveraging its "omnichannel advantage as the nation’s leading regional retail casino operator," particularly in states where it owns casinos. (Source: The Wrap, Deadline)

This saga is a stark reminder of the brutal economics of the sports betting gold rush. While massive money changes hands in sponsorships and deals, the house almost always wins. As Mike Florio of Pro Football Talk wisely cautions, "If you bet, be careful. Don’t delude yourself into thinking you’ll be the one who reverses the trend that allows the sportsbooks to make as much money as they do. Treat it as entertainment. Wager only what you can afford to lose. Never, ever chase losses or view betting as a potential fix to your own short- or long-term financial issues." The takeaway is clear: while sports betting is now intertwined with sports media, it's a landscape best navigated with caution and a clear understanding of the odds. (Source: Mike Florio/Pro Football Talk)

Practical Takeaways for Fans

• New Partner, New Experience: Expect to see DraftKings become the primary betting and odds provider across ESPN's digital platforms starting December 1, 2025.
• ESPN Bet is Out: The ESPN Bet app powered by Penn Entertainment will cease operations, marking the end of that specific co-branded sportsbook.
• Penn's Pivot: Penn Entertainment is rebranding its sports betting offering to theScore Bet and will focus more on its iCasino business moving forward.
• Market Dominance: The sports betting market remains highly competitive, with DraftKings and FanDuel maintaining a strong lead, making it tough for new entrants.
• Bet Responsibly: Always approach sports betting as entertainment and only wager what you can comfortably afford to lose.

Frequently Asked Questions About ESPN's Betting Shift

Q: When does ESPN's deal with DraftKings officially start? A: The new partnership with DraftKings will begin on December 1, 2025, with a full integration rollout expected throughout 2026.

Q: What happens to my old ESPN Bet account? A: Penn Entertainment, which operated ESPN Bet, will transition its users to its rebranded platform, theScore Bet, starting December 1, 2025. You should receive direct communication from Penn regarding your account and any funds.

Q: Why did ESPN Bet shut down? A: ESPN Bet, in partnership with Penn Entertainment, ceased operations due to its failure to achieve significant market share. Despite substantial investment, it couldn't compete effectively with market leaders like DraftKings and FanDuel.

Q: Will ESPN continue to feature betting content in its programming? A: Yes, ESPN will continue to integrate betting-related content. With DraftKings as its official odds provider, expect to see DraftKings odds and promotions across ESPN's platforms, including the betting tab within the ESPN App.

Sources:

• ESPN Press Release, "ESPN names DraftKings official odds provider", November 6, 2025.
• Bloomberg, Christopher Palmeri, "Disney Signs DraftKings as ESPN’s New Sports-Betting Partner", November 6, 2025.
• The Hollywood Reporter, Tony Maglio, "Disney Signs DraftKings as ESPN’s New Sports-Betting Partner", November 6, 2025.
• Pro Football Talk, Mike Florio, "ESPN Bet will soon be no more", November 6, 2025.
• Business Insider, Peter Kafka, "ESPN's failed bet says everything about sports gambling in 2025", November 6, 2025.
• Huddle Up, Joe Pompliano, "Penn Entertainment’s $1.5 Billion Gamble on ESPN Bet Ends In Disaster", November 6, 2025.
• Sports Business Journal, Bill King, "Former ESPN exec critical of network’s betting content", November 6, 2025.
• Sportico, Eben Novy-Williams, "Penn Entertainment’s $1.5 Billion Gamble on ESPN Bet Ends In Disaster", November 6, 2025.
• CNBC, "Disney's ESPN, Penn Entertainment ending sports betting partnership; ESPN signs DraftKings deal", November 6, 2025.
• Deadline, Dade Hayes, "ESPN Winds Down Penn Entertainment Betting Partnership, Segues To DraftKings Deal", November 6, 2025.