Penn Entertainment and ESPN Bet to end sports betting partnership ahead of schedule

Penn Entertainment and ESPN Bet have mutually agreed to end their exclusive U.S. online sports betting partnership nearly eight years early, marking the latest setback in Penn’s efforts to gain ground in the competitive sports wagering market.

The partnership, launched in August 2023 under the ESPN Bet brand, will terminate effective Dec. 1, 2025, both companies said on Thursday. The original 10-year deal had been valued at $150 million per year and granted Penn exclusive rights to the ESPN Bet name, along with warrants for ESPN to buy Penn stock.

Either party could exit the arrangement after three years if market share goals were unmet. ESPN Bet captured only around 3% of the U.S. sports betting market, far below its 10–20% target.

“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,” said Jay Snowden, Penn’s Chief Executive Officer.

Penn will rebrand its U.S. sportsbook as “theScore Bet” on Dec. 1, 2025, to coincide with the expected launch of sports betting in Missouri, pending regulatory approval. The company said the ESPN Bet app will automatically update to the new brand on launch day.

The rebrand will leverage Penn’s $2 billion acquisition of theScore in 2021. TheScore’s media app, which has 4 million monthly active users across North America, will be integrated into the sportsbook, Snowden said. Penn will also retain the 2.9 million users gained through its ESPN partnership.

Snowden said Penn plans to refocus its digital strategy on its growing iCasino business and its Hollywood Casino brand, using a performance-based marketing model instead of fixed media spending.

“We plan to realign our digital focus on our growing iCasino business, while continuing to capitalize on our omnichannel advantage as the nation’s leading regional retail casino operator,” Snowden said.

The company will make a final $38.1 million payment to ESPN in the fourth quarter of 2025, plus $5 million in additional marketing support. All other payments to ESPN will end by year’s close, and Penn will cease using the ESPN brand by Dec. 15, 2025.

This marks Penn’s second major media partnership to collapse, following its breakup with Barstool Sports in 2023, another costly effort that failed to deliver significant market share. Penn sold Barstool back to its founder, Dave Portnoy, for $1 after spending $551 million to acquire it.

In the third quarter, Penn reported $1.4 billion in land-based casino revenue, while online operations brought in $297.7 million and posted an adjusted EBITDA loss of $76.6 million. The company said its iCasino segment grew 40% year-over-year, marking its third consecutive quarter of gains.

Following the termination, ESPN announced a new partnership with DraftKings, which will become its official sportsbook and odds provider beginning Dec. 1, 2025.

“ESPN’s unmatched visibility across the world of sports makes this collaboration a natural fit,” said Jason Robins, CEO and co-founder of DraftKings. “Together, we’re delivering a seamless, engaging, and responsible experience that elevates how fans connect with live sports.”

DraftKings’ sportsbook, daily fantasy, and Pick6 products will be integrated across ESPN’s digital platforms, including a betting tab within the ESPN app and a new show, “ESPN Bet Live.”

“Together, ESPN and Penn created a truly unique offering with unparalleled integrations across our media assets,” said Jimmy Pitaro, chairman of ESPN. “We appreciate the collaboration we had with Penn and are now pursuing other media and marketing opportunities within this space.”