ESPN Bet to Cease Operations as Penn Terminates $1.5B Partnership Deal

Penn Entertainment has recently announced the termination of its 10-year, $1.5 billion collaboration with ESPN, bringing the ESPN Bet project to an end. This joint sportsbook venture, initially bursting with potential when it was launched just over two years ago, now concludes as one of the more ambitious yet ultimately unfruitful endeavors amidst the U.S. sports betting boom. The deal’s end was revealed during Penn’s quarterly earnings call on Thursday, marking a significant development in the landscape of online sports betting.

When the partnership began in August 2023, Penn rebranded its faltering Barstool Sportsbook into ESPN Bet, betting on ESPN’s prominent sports media influence to bolster its presence and achieve a 20% market share by 2027. However, by the fall of 2025, ESPN Bet had only secured a 4.7% market share, barely an improvement over Barstool’s previous performance. Penn CEO Jay Snowden expressed his disappointment but also highlighted a silver lining; this decision allows Penn to streamline its cost structure, reduce fixed media spending, and shift resources toward its North American casino and iCasino businesses.

Snowden acknowledged the challenges faced, emphasizing that despite making considerable strides in improving their product offering and building a more

For ESPN, this sudden shift signals a rapid strategy pivot. Shortly after Penn’s announcement, ESPN confirmed a new long-term partnership with DraftKings, designating it as the official bookmaker. Starting December 1, DraftKings will take over the betting tab within the ESPN app, with the standalone ESPN Bet app scheduled for shutdown on the same date. ESPN chairman Jimmy Pitaro noted that despite attracting 2.9 million new customers to Penn’s network through marketing efforts, the conversion into lasting market share fell short due to low retention. Industry experts echoed this, suggesting that ESPN’s brand strength didn’t fully translate into bettor loyalty.

This abrupt ending sheds light on the complexities of balancing a media empire with a sports wagering enterprise. The situation was notably complicated last month when ESPN had to report on a federal gambling investigation involving high-profile NBA figures while the ESPN Bet logo was still prominently featured on-air. The incident heightened concerns among executives about protecting ESPN’s core brand identity. As the dust settles, both Penn Entertainment and ESPN appear to be charting new courses—Penn with theScore Bet and ESPN with DraftKings—each seeking to leverage their strengths in this dynamic and rapidly evolving market.