PENN and ESPN End Sports Betting Partnership — DraftKings Steps In

PENN Entertainment and ESPN have officially ended their high-profile U.S. sports betting partnership, less than two years after launching ESPN BET. The decision was announced on November 6, 2025, with both companies confirming that the partnership will end on December 1.

The split marks the end of a billion-dollar experiment that aimed to combine the biggest name in sports media with one of the largest casino and online betting operators in North America.

A Short-Lived Alliance

Back in August 2023, PENN Entertainment signed a 10-year deal with ESPN to launch ESPN BET, paying the network around $150 million per year plus stock options. In exchange, PENN got exclusive rights to use the ESPN brand for its online sportsbook in the U.S.

The plan looked promising at first. ESPN brought huge name recognition and millions of sports fans, while PENN had the tech and betting licenses to operate in over a dozen states. Together, they hoped to compete with industry leaders FanDuel and DraftKings.

But things didn’t go as expected. ESPN BET struggled to gain traction, holding only about 2%–3% of the U.S. market, far below its target of 20%. That underperformance, combined with high marketing costs and a crowded market, led both sides to rethink their strategy.

Why the Partnership Ended

PENN Entertainment CEO Jay Snowden said the move allows the company to “operate with a more efficient cost structure” and focus on areas where it already performs well. Especially its iCasino business and the theScore Bet brand, which has seen stronger results in Canada.

Starting December 1, PENN will rebrand ESPN BET to theScore Bet in the U.S. The company will also stop making any remaining payments to ESPN, ending one of the most expensive sponsorship deals in the sports betting world.

For ESPN, the decision marks a return to its media roots. Rather than owning or licensing a sportsbook brand, ESPN will now partner with DraftKings as its exclusive sports betting provider. DraftKings will supply odds, integrations, and a new “Bet” section within the ESPN app starting in December.

ESPN Chairman Jimmy Pitaro said:

“Working with DraftKings, a leader in the space, will allow us to build on our foundation and grow ESPN’s direct-to-consumer business.”

What Happens Next

• PENN Entertainment will shift focus to its own gaming ecosystem, especially theScore Bet and online casino products in North America.
• ESPN will integrate DraftKings’ sportsbook technology directly into its app and website, offering odds and betting content without running its own sportsbook.
• ESPN BET will shut down completely by December 1, with player accounts migrated or refunded depending on the state.

The companies say the decision was mutual and not tied to any recent sports-betting controversies or regulatory pressure. However, the move highlights how fast the U.S. betting market is changing — and how hard it is for even the biggest names to compete against well-established operators.

Industry Reaction and Lessons Learned

Analysts are calling this a “reality check” for big-brand partnerships in online betting. While ESPN’s name brought credibility and awareness, that alone wasn’t enough to compete with the scale, user loyalty, and technology of FanDuel and DraftKings.

Industry observers say this could reshape how media companies approach gambling. Instead of launching or branding their own betting platforms, many may now choose partnership models that limit financial risk while keeping a share of ad revenue and engagement.

For PENN, this is a costly setback — but it also gives the company more flexibility to invest in its strongest assets. For ESPN, the DraftKings deal offers a cleaner, lower-risk way to participate in the betting space while staying true to its role as a sports content leader.

The Bottom Line

The breakup between PENN and ESPN shows that even billion-dollar media names can struggle to make an impact in America’s crowded online betting market.

With DraftKings stepping in as ESPN’s new exclusive partner and theScore Bet expanding under PENN, both companies are moving forward — just on separate paths.

The U.S. sports betting race remains fiercely competitive, and this latest shake-up proves one thing: in 2025, brand power alone isn’t enough. Success comes down to product, pricing, and performance. Not just the logo on the app.

What This Means for the Future of U.S. Sports Betting

The end of the PENN–ESPN deal could have a ripple effect across the entire U.S. betting industry. It highlights the challenge facing operators trying to break into a market dominated by FanDuel and DraftKings, which together control more than 70% of online wagering activity.

In the next phase, analysts expect more strategic partnerships between media brands, data companies, and established operators, but with shorter contracts and clearer performance targets. The lesson from ESPN BET is that branding alone isn’t enough. Without competitive odds, strong app design, and player retention tools, even the most recognisable logo won’t win loyal bettors.

The move also comes at a time when the U.S. sports betting sector is tightening margins. Marketing costs remain high, and new states like California and Texas are still uncertain about legalisation. Operators are therefore focusing on profitability, not just expansion.

For bettors, the change may not bring immediate disruption. But it could shape where and how they bet in the future. With DraftKings now integrated directly into ESPN’s ecosystem, users will likely see more betting content, live odds, and real-time features within ESPN broadcasts and the ESPN app.

Meanwhile, PENN’s refocus on theScore Bet could strengthen its position in Canada and select U.S. states, especially if it continues developing its own technology rather than paying for external brand rights.

As one analyst put it this week:

“This is the end of ESPN BET — but not the end of betting in sports media. It’s just the industry growing up.”

Editor’s Insight

The breakup between PENN and ESPN isn’t just another business move. It’s a signal that the U.S. sports betting boom is maturing. Two years ago, big media tie-ins were the hot trend. Everyone wanted a sportsbook with a household name. Now, the focus is shifting toward long-term sustainability, better margins, sharper tech, and smarter marketing.

At GOSUBETTING, we’ve seen this cycle play out before. When the hype settles, only the operators who genuinely understand player experience and product value stay standing. ESPN made the right choice by going back to what it does best. Namely, sports media. While PENN gets to rebuild on its own terms with theScore Bet.

This move might not shake up bettors overnight, but it shows where the industry is heading: toward partnerships that make sense, not just headlines. And that’s something we’ll be watching closely in 2026.

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