Today, ESPN, Inc. (“ESPN”) and PENN Entertainment, Inc. (Nasdaq: PENN) (“PENN”) announced that they have mutually decided to terminate their exclusive U.S. online sports betting (“OSB”) agreement early, with effect from December 1, 2025.
The original commercial agreement was announced in August 2023. In exchange for $150 million annually in cash payments to ESPN and warrants to buy PENN common stock, ESPN agreed to give PENN media, marketing services, and the exclusive right to the ESPN BET trademark for OSB in the United States. The deal had a ten-year initial duration, but if certain market share performance requirements were not reached after the third year, either side might end the agreement.
“Looking ahead, we plan to rebrand our OSB offering in the U.S. to theScore Bet®, with a target date of December 1, 2025 to coincide with the expected launch of sports betting in Missouri, subject to regulatory approvals,” Snowden went on. Our OSB product in the United States and Canada will now take advantage of integration with theScore media app, which has about 4 million monthly active users throughout North America. We now run theScore Bet brand in Ontario. In addition to functioning as a stand-alone iCasino app, our OSB offerings will continue to offer a top-of-funnel cross-sell opportunity for our Hollywood-branded iCasino, which will continue to be integrated within our OSB product offering in places where it is legal.
“Together, ESPN and PENN created a truly unique offering with unparalleled integrations across our various media assets,” stated Jimmy Pitaro, Chairman of ESPN. Over 2.9 million new users joined the PENN ecosystem thanks to ESPN, and this fall there was a significant increase in new bettors. We value our partnership with PENN and are currently looking for additional media and marketing opportunities in this field.
The fourth quarter of 2025 will mark the end of all unpaid invoices to ESPN. ESPN will collaborate with PENN to help the switch from ESPN BET to theScore Bet® before to and after the termination date. PENN will remain a client of ESPN for advertising.
With a widely varied portfolio of casinos, racetracks, online sports betting, and iCasino services, PENN Entertainment, Inc. and its subsidiaries (“PENN,” or the “Company”) operate in 28 jurisdictions across North America. PENN’s emphasis on organic cross-sell potential is supported by its industry-leading retail casinos, sports media assets, and technology, which includes an in-house iCasino content studio and a proprietary, cutting-edge, fully integrated digital sports betting and iCasino platform. The company’s industry-leading PENN PlayTM customer loyalty program, which offers its more than 33 million members a distinctive collection of benefits and experiences, further strengthens its portfolio.
With eight U.S. television networks, the top sports app, direct-to-consumer ESPN+, top social and digital platforms, ESPN.com, ESPN Audio, initiatives on every continent in the world, and more, ESPN is the top multiplatform sports entertainment brand in the world. Hearst owns 20% of ESPN, while ABC, Inc., an indirect subsidiary of The Walt Disney Company, owns the remaining 80%.
These claims are not assurances of performance, timing, or future outcomes; rather, they are based on management’s present expectations, assumptions, and estimates. As a result, none of these forward-looking claims should be used as forecasts for what may happen in the future. A number of risks, uncertainties, and other factors, including those detailed in PENN Entertainment’s filings with the Securities and Exchange Commission (the “SEC”), including its current reports on Form 8-K, quarterly reports on Form 10-Q, and its annual report on Form 10-K for the year ended December 31, 2024, could cause actual results to differ materially from those contemplated in these statements.
With the exception of PENN Entertainment’s continuing responsibilities under U.S. federal securities laws, forward-looking statements only speak as of the date they are made. PENN Entertainment is not required to publicly update any forward-looking statements in response to new information, future events, or anything else.
When will ESPN and PENN’s online sports betting agreement officially end?
The agreement will terminate on December 1, 2025.
Why are ESPN and PENN ending their exclusive partnership early?
They mutually decided to end the deal as part of a strategic shift in their sports betting operations.
What brand will replace ESPN BET after the termination?
PENN will rebrand to theScore Bet® in the U.S. starting December 1, 2025.
How successful was ESPN BET during the partnership?
The partnership brought over 2.9 million new users into the PENN ecosystem.
Will ESPN and PENN continue working together after the termination?
Yes, PENN will remain an advertising client of ESPN, and both will collaborate during the transition to theScore Bet.
Courtesy: https://www.covers.com, https://www.casino.org, https://pechanga.net
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