Penn Entertainment has announced the early termination of its ESPN Bet contract, just two years into a 10-year agreement, with the operator shifting their focus to online casino.
News comes by way of an official press release following Penn’s Q3 2025 statement – in which the brand highlighted subpar market share figures as a driving force behind this premature shuttering.
The initial deal, signed in August 2023, held an estimated annual value of $150m. Crucial clauses within the accord allowed ESPN to access Penn Entertainment shares, while Penn benefited from ESPN naming rights for its sportsbook product.
However, after only 27 months of collaboration, both parties have opted to scrap the existing arrangement.
Why have Penn ended it with ESPN Bet?
Although sudden, this revelation falls directly in line with vital market share stipulations included in the original pact; if, after three years, the partnership culminated in market underperformance, either entity could repeal the deal. Both sides pulling away at this juncture falls slightly short of the mooted three-year minimum window, but upholds the general spirit of the contract.
Specifically, ESPN Bet captured just 3% of the US sportsbook audience – a figure well below the planned 10% – 20% – culminating in Penn Entertainment and ESPN “amicably” parting.
Jay Snowden, Penn Entertainment CEO and President, commented on the deal’s collapse in a public 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.”
Snowden pointed to the group’s new online casino-focused approach, as Penn seeks to leverage existing premier products toward consumers: “We plan to realign our digital focus on our growing iCasino business, while continuing to capitalize on our omnichannel advantage as the nation’s leading regional retail casino operator.”
ESPN Chairman Jimmy Pitaro outlined some of the tangible successes seen during this contract’s short term: “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.”
Penn’s theScore Bet to replace ESPN Bet
The shuttering of ESPN Bet does not herald the dawn of Penn Entertainment’s sportsbook mission. Rather, this shift paves the way for the firm’s sports betting brand, theScore Bet, to step forward.
Penn will replace ESPN Bet with theScore Bet on 1 December 2025, to align with the launch date for sports wagering in Missouri. All 2.9 million players who registered through ESPN Bet will retain their existing profiles and data; an update will be released in due course to reflect the new brand.
TheScore Bet was purchased by Penn in 2021 for $2.1bn, as the iGaming operator sought to develop and refine in-house sports-centric betting facilities. In 2023, Penn rebranded theScore Bet to ESPN in a bid to improve visibility – but, as proven by the group’s latest figures and announcement, that partnership failed to bear fruit.
In addition to retaining all ESPN Bet-registered players, theScore Bet will acquire four million new users via theScore media service – which will be integrated with the sportsbook at launch.
Penn must pay $38.1m to ESPN in Q4 2025, as well as a $5m marketing fee. ESPN branding shall be halted across all Penn products no later than 15 December 2025.
This stands as Penn’s second notable contractual collapse in recent years. In 2023, the group split from Barstool Sports following expensive underperformance – culminating in selling the brand back to its first owner, Dave Portnoy, for $1. Penn had purchased Barstool Sports for over $550m.
Penn CEO concerned by predictions market “threat”
Snowden used his earnings call to vocalize opposition against predictions platforms, like Kalshi, in what he branded an “existential” threat to traditional sportsbooks:
“This (prediction markets) is existential. This is not like we’re going to be talking about this in a matter of months, not years. And I think as an industry we got to play offence and figure out how do we stay ahead of this.”
Snowden remains bullish when comparing modern sportsbooks to fledgling sports predictions operators – yet is acutely aware of successes within states where ‘normal’ sports wagering is not allowed: “We think our sports betting product is much better than prediction markets, and I think that’s proving out. But where they are building a real business is in states where it’s not legal.”
And, with Penn now homing in on the online casino sphere, Snowden fears that prediction sites will look to leverage their power in regions where virtual casino gaming is illegal – citing the integration of casino mechanics in some sports-facing prediction options.
DraftKings partners with ESPN following Penn breakup
As Snowden’s Penn Entertainment comes to terms with the split from ESPN Bet and prepares to go head-to-head with prediction platforms in the iGaming casino industry, the door for ESPN to partner with alternative organizations has now been unlocked.
Mere hours after its split from Penn was revealed, DraftKings announced that it had signed a deal with ESPN. The result of that treaty is this: From December 1, DraftKings will become the official sports betting and odds provider for ESPN.
On the newfound accord, ESPN Chairman Pitaro said: “Our betting approach has focused on offering an integrated experience within our products. 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.”
Speaking on behalf of ESPN, company Co-Founder and CEO Jason Robins dubbed DraftKings as a creative figurehead in the space: “ESPN’s unmatched visibility across the world of sports make this collaboration a natural fit.
“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.“
