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In a move that caught the betting world off guard, ESPN has officially ended its partnership with PENN Entertainment and signed a new multi-year deal with DraftKings.
The transition takes effect on December 1, 2025, marking the end of ESPN BET and the beginning of a brand-new chapter between two of the most recognizable names in sports and sports betting sites.
This decision comes less than two years after ESPN and PENN inked their 10-year, $2 billion agreement that launched ESPN BET. The collaboration had lofty ambitions—to blend ESPN’s unmatched sports media influence with PENN’s gaming expertise. Despite early hype and a flashy rollout, the product never quite captured the market share it needed to compete with powerhouses like DraftKings, FanDuel, and BetMGM.
Now, with DraftKings stepping in as ESPN’s exclusive sportsbook and odds provider, the network is shifting its focus from running a standalone betting brand to fully integrating sports betting into its digital ecosystem.
ESPN and PENN Part Ways — Quietly and Amicably
While the split may sound abrupt, both ESPN and PENN emphasized that the decision was mutual and forward-thinking. Jay Snowden, PENN Entertainment’s president and CEO, described it as a natural pivot point rather than a failure.
“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. 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 said.
PENN’s focus will now shift back to what it knows best—casino gaming. The company plans to lean into its growing iCasino segment and leverage its network of regional retail casinos. In other words, PENN is returning to its core strength rather than doubling down on an uphill battle in the online sportsbook market.
This move also frees PENN from the steep annual payments it was making to ESPN under its original deal—roughly $150 million per year. With the ESPN BET brand shutting down in December, PENN will work on transitioning users to theScore Bet, its in-house sportsbook operating in select markets.
DraftKings Steps Into the Spotlight
For DraftKings sportsbook, this partnership is about scale, visibility, and opportunity. Becoming ESPN’s exclusive sportsbook and odds provider instantly gives the company an unmatched level of exposure across one of the most recognizable sports media brands in the world.
Jason Robins, CEO and co-founder of DraftKings, framed the partnership as a perfect fit. “ESPN’s unmatched visibility across the world of sports makes this collaboration a natural fit,” he said. “We’re delivering a seamless, engaging, and responsible experience that elevates how fans connect with live sports.”
Under the new deal, DraftKings’ full suite of products—including its sportsbook, daily fantasy sports, and Pick6 game—will be integrated directly into ESPN’s platforms. This includes powering the betting tab inside the ESPN app, where fans can view odds, place bets, and access personalized offers.
It’s a strategic win for DraftKings, which already operates in 28 states, Washington D.C., and Ontario, and serves more than 10 million customers. By embedding its products within ESPN’s massive digital footprint, DraftKings positions itself as the go-to option for millions of sports fans looking to bet while they watch.
ESPN Refocuses Its Game Plan
Instead of running its own sportsbook, ESPN is getting back to what it knows best—creating world-class sports coverage and experiences. Under the new deal, ESPN BET will shift gears, becoming a betting-focused content brand with DraftKings integrations rather than operating as a separate sportsbook.
One of the biggest carryovers will be ESPN BET Live, the network’s weekday betting show that airs at 6:30 p.m. ET on ESPN2. It’ll remain front and center in ESPN’s betting coverage, only now with DraftKings woven into nearly every aspect—from on-screen odds to promotions and in-show segments.
ESPN Chairman Jimmy Pitaro summed up the new direction perfectly. “Our betting approach has focused on offering an integrated experience within our products,” he said. “Working with DraftKings allows us to build upon that foundation and continue to super-serve passionate sports fans.”
The new setup also ties into ESPN Unlimited, the network’s recently launched direct-to-consumer streaming service. DraftKings users will soon have access to special promotions connected to ESPN Unlimited subscriptions, giving fans one streamlined space to watch games, track odds, and play fantasy contests—all under one roof.
Coming Full Circle With DraftKings
This move between ESPN and DraftKings feels like the natural next step in a relationship that’s been years in the making. The two companies have quietly worked together on smaller projects and integrations before, but this time, they’re going all in.
The deal reflects how far sports betting has come since legalization took off across the US. It also shows that ESPN is done competing directly as a sportsbook operator. Instead, the network is leaning into what it does best—connecting fans through great content—while letting a proven industry leader handle the betting side.
With PENN officially stepping away, ESPN’s short run as a sportsbook brand ends. DraftKings’ arrival signals a smarter, cleaner model that focuses on tech-driven engagement instead of operating a standalone app.
When December 1 arrives, fans will start to notice the transition across ESPN’s app, website, and on-air programming. By 2026, when the full rollout is complete, ESPN and DraftKings will have fully blended betting, fantasy, and streaming into one seamless experience.
There’s little doubt this partnership will leave a lasting mark on how fans interact with live sports—changing not just how they watch, but how they play and engage along the way.
