Penn Entertainment and ESPN announced today that they have mutually agreed to the early termination of their exclusive U.S. online sports betting (OSB) agreement, effective December 1, 2025.
Under the terms of the original commercial agreement, announced in August 2023, ESPN agreed to provide Penn with media, marketing services, and the exclusive right to the ESPN Bet trademark for OSB in the U.S. In exchange, Penn paid ESPN $150 million per year in cash payments and warrants to purchase common stock.
The agreement had an initial term of 10 years, with the right for either party to terminate after the third year if specific market share performance thresholds were not met.
“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, CEO and President of Penn Entertainment, said. “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.”
Thursday’s news does not mean Penn Entertainment is exiting the OSB space. Snowden said the company plans to rebrand its sports betting offering to theScore Bet, with a target date of December 1, 2025, to coincide with the launch of Missouri sports betting. ESPN Bet is one of nine online sportsbooks to receive at least a temporary license from the Missouri Gaming Commission. The change is subject to regulatory approvals.
TheScore Bet is a brand that was previously available in several U.S. sports betting markets before the company was purchased by Penn. With theScore being based in Toronto, Penn decided to make it available only to Ontario customers due to its brand recognition.
“We currently operate theScore Bet brand in Ontario, and our OSB product across both the U.S. and Canada will now leverage connectivity with theScore media app, which has approximately 4 million monthly active users across North America,” Snowden said.
“Our OSB offerings will continue to provide a top of funnel cross-sell opportunity for our Hollywood-branded iCasino, which will remain integrated into our OSB offering in states where legal, in addition to serving as a standalone iCasino app.”
New Jersey. Pennsylvania, Michigan, and West Virginia are the markets where both the ESPN Bet and Hollywood Casino apps are legal and available.
For those wondering what the future holds for the ESPN Bet brand, the answer remains TBD. ESPN Chairman Jimmy Pitaro spoke about the “truly unique offering with unparalleled interactions” that the company shared with Penn.
“ESPN drove over 2.9 million new users into the Penn ecosystem, with a strong uptick in first-time bettors this fall,” Pitaro said. “We appreciate the collaboration we had with Penn and are now pursuing other media and marketing opportunities within this space.”
One of those other opportunities was announced Thursday morning. DraftKings will be the exclusive official sportsbook and odds provider of ESPN, effective December 1, 2025. The deal includes DK entertainment products such as daily fantasy sports and sportsbook being exclusively integrated across ESPN’s ecosystem, with a full rollout following in 2026.
Jason Robins, CEO and Co-Founder of DraftKings called the collaboration with ESPN “a natural fit.”
“As an innovative leader in digital sports entertainment, DraftKings is uniquely positioned to integrate our technologies 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,” Robins said.
