DraftKings reaches agreement to become official sportsbook and odds provider for ESPN
It didn’t take ESPN long to pivot from the termination of its agreement with Penn Entertainment.
ESPN on Thursday morning announced an agreement with DraftKings to be the official sportsbook and odds provider for ESPN, effective 1 December 1. A news release said the agreement “unites two of the most iconic brands in sports” to deliver premium sports betting content and experiences.
“Our betting approach has focused on offering an integrated experience within our products,” ESPN Chairman Jimmy Pitaro said in a statement. “Working with DraftKings, a leader in the space, will allow us to build upon that foundation, continue to super-serve passionate sports fans and grow our ESPN direct-to-consumer business. We are excited about this new collaboration with DraftKings.”
During Thursday’s earning call, Penn Entertainment CEO Jay Snowden said the termination of the agreement with ESPN had been in the works for months.
“We also know what that threshold level was of market share to be at by the third anniversary (of the agreement with ESPN), and we could see through the first couple months of football season, though we’re making a lot of improvements in a number of areas that we’ve shared, we weren’t on a path, a trajectory, to get to that level of market share,” Snowden said. “You know where it’s headed. And why sort of string this along? Let’s get together and figure out the best path forward for both companies.”
Beginning 1 December, DraftKings entertainment products will be exclusively integrated across ESPN’s ecosystem. A full rollout is expected in 2026. Players will be able to access betting features and offerings including DraftKings’ sportsbook, daily fantasy, and DraftKings Pick6 at launch.
“ESPN’s unmatched visibility across the world of sports make this collaboration a natural fit,” said DraftKings CEO and Co-Founder Jason Robins. “As an innovative leader in digital sports entertainment, DraftKings is uniquely positioned to integrate our technology and products with ESPN’s iconic brand and storytelling power. Together, we’re delivering a seamless, engaging, and responsible experience that elevates how fans connect with live sports.”
DraftKings also will play a major role across ESPN’s digital platforms. DraftKings will power the betting tab within the ESPN app, and customers will receive special promotions for ESPN Unlimited, ESPN’s new direct-to-consumer product.
J. P. Morgan analyst Dan Politzer said in a note that the termination with ESPN Bet was a positive for Penn Entertainment, “as it was expensive, with Penn paying ESPN Bet US$150 million per year plus US$50 million in warrant expense.”
Politzer also wrote that Penn “failed to obtain meaningful market share in a competitive segment; it has been a distraction for investors and management for several years (back to Barstool), overshadowing a fairly solid land-based business and project pipeline.”
DraftKings operates in 28 states, Washington, D.C., and Ontario, Canada. The company has more than 10 million customers across its products. The deal expands ESPN’s ability to be the go-to platform for sports fans with access to DraftKings’ products.
ESPN BET will shift to a sports betting content brand with DraftKings Sportsbook integrations, anchored by ESPN’s betting show, ESPN BET Live, which airs weekdays at 6:30 p.m. ET on ESPN2, and dedicated social and digital channels.
Also, DraftKings and ESPN will collaborate to advance their shared commitment to responsible gaming, by dedicating prominent assets to educate, raise customer awareness and promote responsible play through campaigns and integrations.
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