ESPN Drops $2B ESPN Bet Partnership with Penn Entertainment, Signs New Deal with DraftKings

^{The $2 billion dollar partnership between ESPN and Penn Entertainment has come to a close after the two companies decided that ESPN Bet did not perform as well as expected. (Photo: SOPA Images Limited / Alamy)}

ESPN announced on Thursday that it would be prematurely ending its sports betting partnership with Penn Entertainment, after ESPN Bet was unsuccessful in grabbing a meaningful amount of the U.S. sports betting market share.

The two companies agreed to a 10-year, $2 billion partnership in 2023, in which Penn would pay ESPN $150 million per year and give the sports media company warrants to purchase Penn stock. In exchange, ESPN had given Penn the exclusive use of the ESPN Bet brand in the United States, along with media and marketing services.

ESPN Bet Never Reached Expected Market Share

Despite the high-profile launch, ESPN Bet’s share of the U.S. sports betting market rarely managed to climb out of the single digits, according to The Athletic. As a result, the two sides agreed to cancel the deal, with payments to ESPN ending in the fourth quarter of 2025.

“When we first announced our partnership with ESPN, both sides expected to compete for a podium position in the space,” Penn Entertainment CEO Jay Snowden said in a press release. “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.”

Penn Entertainment also enjoyed growth during its partnership with ESPN, even if it didn’t get the level of results either side had hoped for. According to Jimmy Pitaro, Chairman of ESPN, the collaboration drove 2.9 million new users into “the Penn ecosystem,” including a large number of first-time bettors in Fall 2025. 

ESPN has agreed to work with Penn in order to transition the ESPN Bet platforms back to theScore. Despite the end of the deal, Penn will still remain an advertising client of ESPN. 

ESPN Names DraftKings Its New Sports Betting Partner

On the same day, ESPN also announced a new partnership with DraftKings as its exclusive "Official Sportsbook and Odds Provider of ESPN." The new agreement will kick off on Dec. 1, 2025, the same date that the deal with Penn will be ending. 

As a part of the agreement, DraftKings products will be integrated across the ESPN media empire, and ESPN will direct fans to DraftKings’ sports betting, daily fantasy, and Pick6 offerings.

“Our betting approach has focused on offering an integrated experience within our products,” Jimmy Pitaro said in a statement. “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.”

DraftKings will take over the betting tab in the ESPN app, and DraftKings customers will get promotions related to ESPN Unlimited, the brand’s latest full-service streaming platform.

DraftKings is already active as a sports betting provider in 28 states, Washington D.C., and Ontario, Canada. The company boasts more than 10 million customers across all of its products, including its daily fantasy offerings. Still, the brand sees growth potential by partnering with ESPN.

“ESPN’s unmatched visibility across the world of sports make this collaboration a natural fit,” DraftKings CEO Jason Robins said in a statement. “Together, we’re delivering a seamless, engaging, and responsible experience that elevates how fans connect with live sports.”