ESPN Quickly Partners with DraftKings After Cutting Ties with PENN
ESPN has swiftly entered into a strategic partnership with DraftKings, naming it the exclusive Official Sportsbook and Odds Provider for the media giant. This new agreement is set to take effect on December 1, 2025, the same day ESPN’s prior sports betting arrangement with PENN Entertainment is scheduled to terminate.
This rapid transition allows ESPN to maintain an integrated betting experience for its audience while giving DraftKings a powerful, exclusive presence across the vast ESPN ecosystem. The new partnership strengthens the position of DraftKings in the competitive U.S. market against rival FanDuel.
Exclusive Integration Across ESPN Platforms
Under the agreement, DraftKings will be the sole provider allowed to integrate its entertainment products across ESPN’s media assets. Key elements of the collaboration include:
- App Integration: DraftKings will provide content for the betting tab within the popular ESPN App.
- Product Access: ESPN users will gain access to DraftKings platforms, including the sportsbook, daily fantasy (DFS), and Pick6 offerings.
- Rollout Timeline: While access will begin in December, the full implementation of all planned integrations is anticipated throughout 2026.
Jason Robins, CEO of DraftKings, stated that ESPN’s “unmatched visibility” makes the collaboration a “natural fit.” The partnership will leverage DraftKings’ technology to deliver a seamless and engaging experience that connects fans with live sports.
Building on the Digital Foundation
Jimmy Pitaro, Chairman of ESPN, emphasized the value of the new agreement. He stated that working with DraftKings, a leader in the space, will allow ESPN to “build upon that foundation, continue to super-serve passionate sports fans and grow our ESPN direct-to-consumer business.”
In addition to commercial integration, the two companies will collaborate on responsible gaming initiatives, promoting safe betting practices through joint advertising and integrations. The new deal effectively cements the “ESPN Bet” brand, which PENN previously licensed, as ESPN’s internal sports betting content brand that will now feature DraftKings Sportsbook integrations.
Financial Details of PENN Separation
The amicable termination of the PENN-ESPN deal was finalized with specific financial arrangements. PENN will conclude all cash payments to ESPN by the end of Q4 2025, totaling $38.1 million for the remaining fees through December 1. PENN also agreed to pay an additional $5 million for traditional media support for its new brands, theScore Bet and Hollywood iCasino.
Crucially, ESPN will retain its acquired warrants to purchase 7,957,210 shares of PENN common stock at a weighted average price of $28.95. All unearned and contingent warrants were forfeited by ESPN. For PENN, the separation means they retain the 2.9 million digital users acquired during the ESPN partnership, which they now plan to migrate and utilize for their unified theScore Bet brand strategy across the U.S. and Canada.
Recommended