A Bettor Deal? ESPN Swaps Penn For DraftKings As Sports Wager Partner
Thursday, November 6, 2025 at 05:29PM By Barry Janoff
Nov. 6, 2025: ESPN said today it has mutually agreed upon the early termination of its exclusive U.S. online sports wagering alliance with Penn Entertainment.
Concurrently, ESPN unveiled an agreement naming DraftKings its exclusive “official sportsbook and odds provider.” Financial terms were not shared.
Both moves are effective Dec. 1, 2025.
ESPN BET run with Penn will shift to a sports betting content brand with DraftKings Sportsbook integrations, anchored by ESPN’s betting show, ESPN BET Live.
Under a ten-year, $1.5 billion deal unveiled in August 2023, ESPN agreed to provide Penn with media, marketing services and the exclusive right to the ESPN BET trademark for online sports betting in the U.S.
The agreement came with the right for either party to terminate the pact after the third year if specific market share performance thresholds were not met.
According to The Wall Street Journal, “The early ending for ESPN’s Penn Entertainment venture and ESPN Bet’s inability to gain scale is a sign of the grip DraftKings and FanDuel have on the market.
“Sports betting has exploded in America, but smaller companies and later entrants have been unable to capture fans’s attention.”
“When we first announced our partnership with ESPN, both sides made it clear that we expected to compete for a podium position in the space,” Jay Snowden, Penn Entertainment CEO and president, said via the company.
“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. 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.” 
Penn Entertainment, with its subsidiaries, operates in 28 jurisdictions throughout North America, with a portfolio of casinos, racetracks, and online sports betting and iCasino offerings.
“Together, ESPN and Penn created a truly unique offering with unparalleled integrations across our various media assets,” Jimmy Pitaro, ESPN chairman, said via the network.
“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.”
Beginning in December 2025, DraftKings entertainment products will be exclusively integrated across ESPN’s ecosystem with a full rollout expected in 2026. People will be able to access betting features and offerings including DraftKings’ sportsbook, daily fantasy and DraftKings Pick6 at launch.
DraftKings said it would also play a major role across ESPN’s digital platforms. DraftKings will “power the betting tab within the ESPN app and their customers will receive special promotions for ESPN Unlimited, ESPN’s newly launched direct-to-consumer product.
“Together, DraftKings and ESPN will collaborate to advance their shared commitment to responsible gaming, by dedicating prominent assets to educate, raise customer awareness and promote responsible play through campaigns and integrations,” both sides said.
DraftKings said it operates in 28 states and in Washington D.C. and Ontario, Canada, and has more than 10 million customers across its products,
“Our betting approach has focused on offering an integrated experience within our products,” said Pitaro.
“Together, DraftKings and ESPN will collaborate to advance their shared commitment to responsible gaming."
“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.”
“ESPN’s unmatched visibility across the world of sports make this collaboration a natural fit,” Jason Robins, CEO and co-founder of DraftKings, said via the company.
“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.”
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