ESPN strikes $1.5B deal to jump into sports betting with Penn Entertainment

ESPN has entered a significant agreement with Penn Entertainment, worth $1.5 billion, to enter the realm of sports betting. This partnership involves rebranding an existing sports-betting app under the name ESPN Bet, which Penn Entertainment will operate. This move is somewhat unexpected, given Disney’s careful preservation of its family-friendly reputation, which doesn’t typically align with sports gambling. As part of the deal, ESPN will promote ESPN Bet on its online and broadcast platforms to maximize its visibility among fans. The app will also have some access to ESPN talent.

Penn Entertainment’s exclusive rights to the ESPN brand will last for an initial decade, with a possibility of extending for another decade through mutual consent. Beyond the $1.5 billion licensing fee, which will be paid over ten years, Penn will also provide ESPN with rights valued at approximately $500 million to purchase shares in Penn.

ESPN Chairman Jimmy Pitaro expressed confidence in Penn Entertainment’s ability to enhance the sports betting experience through ESPN Bet. ESPN plans to use its platforms to educate sports enthusiasts about responsible gaming, maintaining their journalistic integrity while covering the sports betting industry. They intend to establish a “responsible gaming” committee and formulate marketing guidelines that prioritize fan protection.

In other news, Penn Entertainment has sold Barstool Sports, a bold sports media website, back to its founder, Dave Portnoy. This comes after Penn initially acquired a 36% stake in Barstool Sports in early 2020 and later purchased the remaining portion in February 2023. The details of this sale have not been disclosed, but as part of the deal, Penn will be entitled to 50% of future proceeds from any potential sale or monetization of Barstool.

Frequently Asked Questions (FAQs) about Sports Betting Partnership

More about Sports Betting Partnership

• ESPN Strikes $1.5B Deal for Sports Betting – Sportico article detailing the $1.5 billion partnership between ESPN and Penn Entertainment for sports betting.
• ESPN Bet: A New Era in Sports Betting – ESPN’s official coverage of the launch of ESPN Bet and its implications.
• Penn Entertainment’s Official Website – Penn Entertainment’s official website providing more information about the company’s activities and partnerships.
• Disney’s ESPN: The Evolution of a Brand – CNBC’s coverage of ESPN’s evolution from a small startup to a broadcasting giant, highlighting its significance in the sports industry.
• Barstool Sports: A Brief Overview – Official website of Barstool Sports, the irreverent sports media site mentioned in the text, for further exploration of its content and history.