Penn Ends $2 Billion ESPN Bet Deal After Two Years
Penn Entertainment will rebrand its sportsbook as theScore Bet and record an $825 million write-down. The company announced the termination of its $2 billion partnership with ESPN in a joint press release on Thursday.
The collaboration, launched in 2023, will officially conclude on December 1, just before the end of the NFL regular season. Following that date, Penn will rename the ESPN Bet app to theScore Bet, reflecting the brand of the Canadian sportsbook it purchased in 2021.
Details of the Partnership
Under the 2023 agreement, Penn committed to paying $150 million annually for ten years, along with warrants to purchase Penn stock. These terms brought the overall value of the deal to approximately $2 billion, granting Penn the right to use ESPN’s branding for its sports betting platform.
Performance Challenges and Market Share
Despite its high-profile launch, ESPN Bet struggled to gain a strong foothold in the market. Data from Casino Reports indicated that ESPN Bet held only 2.6% of the online sports betting market as of August and has maintained roughly the same share since mid-2024.
The agreement included an option to exit after the third year if certain performance goals were unmet, but Penn and ESPN decided to end the partnership even earlier.
“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,” Penn CEO Jay Snowden said.
Next Steps
With the exit from the ESPN deal, Penn Entertainment now plans to focus on expanding theScore Bet brand across North America.
Author’s summary: Penn Entertainment ends its costly ESPN partnership early, rebranding its sportsbook as theScore Bet after modest market performance and a major financial write-down.