PENN Entertainment and ESPN have mutually agreed to the early termination of their exclusive online sports betting agreement in the U.S., effective December 1, 2025.
Under the terms of the original agreement, announced in August 2023, ESPN agreed to provide PENN with media and marketing services, as well as the exclusive right to the ESPN BET brand in the US, in exchange for $150 million annually in payments and subscription bonuses for the purchase of PENN common stock.
However, PENN has recorded losses of over US$1.5 billion in the last five years, including investments in ESPN Bet and a previous alliance with Barstool Sports, a sports website aimed at a younger audience.
According to Poder Sports MKT, the app only captured 3% of the online sports betting market in the US.
What will happen from now on?
The agreement had an initial term of 10 years, with either party having the right to terminate it after the third year if specific market share targets were not met.
“When we announced our partnership with ESPN, both parties made it clear that we expected to compete for a leading position in the industry,” said Jay Snowden, CEO and president of PENN Entertainment.
“Although we have made significant progress in improving our product offering and building a cohesive ecosystem with ESPN, we have mutually agreed to end our collaboration,” he added.
Regarding the next steps, Snowden commented: “We plan to rename our US betting offering to theScoreBet, with a projected launch date of December 1, 2025, coinciding with the expected launch of sports betting in Missouri, subject to regulatory approvals.”
Currently, PENN operates the theScore Bet brand in Ontario. “Our betting product, both in the US and Canada, will now leverage connectivity with the theScore media app, which has approximately 4 million monthly active users in North America,” he explained.
Jimmy Pitaro, president of ESPN, said: “Together, ESPN and PENN have created a truly unique offering, with unparalleled integrations across our diverse media assets. ESPN has brought over 2.9 million new users to the PENN ecosystem, with a strong increase in the number of first-time bettors this fall.”
According to an official statement from ESPN, all outstanding payments to the company will cease in the fourth quarter of 2025.
Transition process
Before and after the termination date, ESPN will work with PENN to facilitate the transition from ESPN BET to theScore Bet. In addition, PENN will continue to be an advertising client of ESPN.
Who is ESPN’s new betting partner?
Immediately, ESPN repositioned itself in the American sports betting market and closed a deal with DraftKings, which will become the exclusive odds provider starting in December, with full implementation in 2026.
“Our focus on betting aims to offer an integrated experience. Working with DraftKings, an industry leader, allows us to build on that foundation,” said Jimmy Pitaro, president of ESPN.
Thus, DraftKings CEO and co-founder Jason Robins also commented on the new agreement. “ESPN’s unparalleled visibility makes this collaboration a natural fit. Together, we will deliver an engaging and responsible experience for fans.”