Penn Entertainment Ends $2 Billion ESPN Bet Partnership Early
Penn Entertainment will rebrand its sportsbook as theScore Bet and recognize an $825 million loss from the deal. The ESPN Bet brand will disappear in a few weeks as Penn and ESPN have mutually agreed to terminate their $2 billion partnership.
Partnership Termination Details
The partnership, originally announced in 2023, will end on December 1, just before the NFL regular season concludes. Afterward, the ESPN Bet app will transition to theScore Bet, the Canadian sportsbook acquired by Penn in 2021.
Financial Terms and Market Performance
- The initial agreement required Penn to pay $150 million annually for 10 years, plus stock warrants, totaling around $2 billion.
- ESPN was granted rights to use its name and branding on the sportsbook under this contract.
- Despite the heavy investment, ESPN Bet struggled to capture a meaningful share of the market.
- In August, ESPN Bet held only 2.6% of the online sports betting market, maintaining this low level since mid-2024.
Contract Termination Clause
The contract included a clause permitting termination after three years if market share targets were unmet. However, the deal ended 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.
Despite the significant backing, the partnership failed to reach its goals, leading to a strategic pivot by Penn toward theScore Bet branding.
Author's Summary
Penn Entertainment ends its $2 billion ESPN Bet partnership after struggling to gain market share, opting to rebrand as theScore Bet and write down $825 million in losses.
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