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ESPN and PENN Entertainment announced the early termination of their 10-year, $2 billion partnership agreed upon in 2023, effectively shutting down the ESPN Bet app, on Thursday (November 6).
"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 Jay Snowden, CEO and president of PENN Entertainment, in a press release. "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 refocus our digital strategy on our growing iCasino business, while continuing to capitalize on our omnichannel advantage as the nation's leading regional retail casino operator."
ESPN will, instead, return to a large-scale, multiyear partnership with DraftKings, which will now become the network's exclusive official sportsbook and odds provider effective December 1, 2025.
“Our betting approach has focused on offering an integrated experience within our products,” said ESPN Chariman Jimmy Pitaro in a press release. “Working with DraftKings, a leader in the space, will allow us to build upon that foundation, continue to super-serve passionate sports fans and grow our ESPN direct-to-consumer business. We are excited about this new collaboration with DraftKings.”
DraftKings will reportedly play a role across ESPN's digital platforms and power the betting tab within the ESPN app with customers set to receive special promotion for the newly launched direct-to-consumer product ESPN Unlimited. ESPN's deal with PENN Entertainment led to the latter selling ownership of Barstool Sports -- which it had previously purchased for $551 million -- back to its founder Dave Portnoy for $1 in August 2023.
Barstool Sports effectively shut down its sportsbook app and announced its own partnership with DraftKings shortly after.