ESPN and PENN Entertainment have mutually agreed to an early termination of a betting partnership they established in 2023.
The companies’ 10-year deal paid ESPN $150 million a year in exchange for marketing services and the right to use the ESPN Bet brand in the U.S. The gambling offering was woven into ESPN’s recently launched subscription streaming app and cross-promoted on other platforms.
The wind-down of ESPN comes as the NBA is dealing with a gambling scandal involving multiple players and coaches. The U.S. Department of Justice last month charged dozens of people in two separate cases in which the outcome of games was manipulated. The allegations have rocked the sports world given its recent embrace of legalized sports gambling. Disney in particular, given its family-friendly brand, resisted entering the betting space for years, though the tide has turned for leagues and their media partners.
ESPN and Penn said ESPN Bet would be wound down on December 1. The companies noted that their deal allowed for either party to terminate it after the third year “if specific market share performance thresholds were not met.” In explaining the shutdown, they emphasized the lack of performance and did not cite the NBA scandal or any factors other than the financial results.
ESPN Chairman Jimmy Pitaro noted that 2.9 million new users were drawn to ESPN Bet, with “a strong uptick in first-time bettors this fall.” He said the company is “pursuing other media and marketing opportunities within this space.”
Penn CEO Jay Snowden sounded a similar note, emphasizing that the companies “mutually and amicably agreed to wind down our collaboration.” Penn intends to rebrand ESPN Bet as TheScore Bet on December 1, coinciding with the expected launch of sports betting in Missouri, subject to regulatory approvals. The company will now “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.”
All outstanding payments to ESPN will stop in the fourth quarter, the companies said. Before and after the termination date, ESPN will work with Penn to facilitate the move from ESPN BET to TheScore Bet. Penn will continue to be an ESPN advertising client.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source deadline.com ’
