Disney’s ESPN and Penn Entertainment are ending their sports betting partnership, bringing the ESPN Bet brand on Penn’s sportsbook to an early close—years ahead of the original timeline.
The partnership, established in 2023, allowed ESPN to rebrand and relaunch Penn’s sportsbook, formerly known as Barstool Sportsbook, under the ESPN Bet name. The agreement was initially set for a 10-year term.
On Thursday, Penn and ESPN announced they have mutually agreed to wind down the partnership early. The sportsbook will be rebranded once again as theScore Bet.
“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 Penn CEO Jay Snowden in a news 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.”
The original 10-year deal included a clause allowing either ESPN or Penn to terminate the agreement after three years if specific market share performance thresholds were not met. Despite this, the partnership is ending after just over two years.
ESPN Chairman Jimmy Pitaro commented in the release that the company is “now pursuing other media and marketing opportunities within this space.”
ESPN had secured the deal with Penn after an extensive search for a suitable gambling partner. Sports betting has become a key component of ESPN’s direct-to-consumer streaming platform.
The ESPN Bet brand is expected to be phased out by December 1, according to the announcement.
Under the original agreement, ESPN granted Penn the exclusive rights to use its brand for the sportsbook, as well as media and marketing services. In return, Penn agreed to pay ESPN $1.5 billion in cash over the 10-year period and granted ESPN approximately $500 million in warrants to purchase about 31.8 million Penn common shares, vesting over the same timeframe.
With the early termination, Penn’s annual $150 million cash payments to ESPN will cease in the fourth quarter, along with the warrants to purchase Penn’s common stock.
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