Penn Entertainment Ends $2 Billion ESPN Bet Partnership Early
Penn Entertainment will rebrand its sportsbook as theScore Bet and take an $825 million write-down loss after canceling its $2 billion partnership with ESPN.
The ESPN Bet brand will disappear by December 1, a month before the close of the NFL regular season. Penn will then relaunch the app under theScore Bet, the name of the Canada-based sportsbook Penn purchased in 2021.
Background of the Partnership
- The partnership was announced in 2023 and was a 10-year deal worth $2 billion.
- Penn agreed to pay $150 million annually plus stock warrants for use of the ESPN name and branding.
- Despite the investment, ESPN Bet failed to capture a notable share of the market.
Market Performance and Termination
According to Casino Reports, ESPN Bet held only 2.6% of the online sports betting market as of August and maintained this low share since mid-2024.
The deal included a clause allowing termination after three years if certain market share goals were not met, but the agreement is ending 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,” said Penn CEO Jay Snowden.
Author's Summary
Penn Entertainment ends its costly ESPN Bet deal early, shifting focus to itsScore Bet after unmet market expectations despite a massive $2 billion investment.