Penn Ends $2 Billion ESPN Bet Deal After Just Two Years
Penn Entertainment will discontinue its ESPN Bet platform within weeks, following the termination of its $2 billion partnership with ESPN. The collaboration officially ends on December 1, nearly a month before the NFL regular season concludes.
Rebranding and Financial Impact
After the split, Penn will rebrand the ESPN Bet app to theScore Bet, taking on the name of the Canadian sportsbook it acquired in 2021. As part of this transition, the company will record an $825 million write-down loss.
Background of the Partnership
The Penn-ESPN agreement was announced in 2023, granting Penn the right to use ESPN’s branding in exchange for $150 million annually over ten years, along with stock warrants that expanded the deal’s total value to $2 billion.
Market Performance and Early Exit
Despite the high expectations, ESPN Bet captured only 2.6% of the online sports betting market as of August, according to Casino Reports. The deal allowed for termination in its third year if market share goals were not met, but Penn decided to withdraw earlier.
“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,” said Penn CEO Jay Snowden.
Author’s Summary
Penn’s early exit from the ESPN Bet venture underscores the company’s pivot toward its own sportsbook brand after underwhelming market results and heavy financial losses.