Penn Leisure Inc. and Disney’s ESPN are cashing out on their 10-year deal, with their three way partnership sportsbook ESPNBet not a success in a crowded market.
However methinks there’s extra to the story right here. Let’s not neglect that the NBA’s ongoing playing conspiracy has the league trying round corners, bettors on tilt, and traders spooked.
The $13.7 billion US betting market (per the American Gaming Affiliation) is cutthroat, with whales like Flutter Leisure’s (FLUT) FanDuel Sportsbook and DraftKings SportsBook (DKNG) occupying appreciable market share and new sportsbooks popping up daily.
DraftKings is taking up ESPN’s betting enterprise from Penn, and can combine with ESPN’s web site and apps beginning December 1st, in keeping with a shared press launch this Thursday on ESPN Press Room.
“We had aspirations, we had goals to be a podium player, it didn’t work out, We’re moving on from that. And they are too,” Penn CEO Jay Snowden defined, per Bloomberg.
Nonetheless, there’s an alternate rationalization—or at the very least one other issue—at play. Pardon the extreme sports activities puns; it is conventional.
The NBA is dealing with a severe betting scandal.
Picture supply: Ezra Shaw/Getty Pictures
NBA betting scandal damage ESPNBet
I ponder if an in-studio manufacturing gaffe has ever contributed to the tip of a $2 billion deal earlier than.
Now, correlation is not causation, however the dangerous optics of ESPNBet having to drag a reside advert banner the day that the huge NBA playing scandal (together with FBI arrests of energetic gamers and coaches) juuuust may not be what a family-oriented model like Disney needs.
If you have not seen the video but, watch the “ESPNBets” advert on ticker on the underside proper. And take into account they’re discussing the very severe m’kay (however truly) largest playing conspiracy because the federal legalization of sports activities betting.
“ESPN slick removed the sports ticker that was showing their betting site during this segment about the FBI investigations [crying emoji x2],” writes @adryanashton on X.
ESPN slick eliminated the sports activities ticker that was exhibiting their betting web site throughout this phase in regards to the FBI investigations 😭😭 pic.twitter.com/xBQsHqUYaf
— A ✩ (@adryanashton) October 23, 2025
To cite Scooby Doo, “Ruh-roh”. To cite Brigid Kennedy of Sports activities Illustrated:
Whereas it was the correct transfer, folks noticed the gaffe, and it proceeded to pattern on-line. Looks like nothing, however even a tiny shift can push an already dissatisfied board to a ultimate determination.
No matter whether or not this was the straw that broke the camel’s again, the financials that received each events to this place have been convincingly uninspiring.
Associated: Large guess pays off for Fox Corp., newest scores present
“ESPN Bet, a relatively late entry, struggled to come out with the popular features other operators offered,” Christopher Palmeri experiences for Bloomberg. “The business was a distant seventh place in the mobile sports-betting market in the US with a less than 3% share, according to data from Alfonso Straffon, an independent analyst.”
ESPN must be in good arms with DraftKings, who aren’t going anyplace with their dominant share (accompanied by FanDuel) of the US betting market. The sports activities chief at all times must associate with sportsbooks relatively than forming one themselves as a result of their father or mother firm, Disney, does not wish to run a playing operation immediately, TipRanks’ Vince Condarcuri explains on LinkedIn.
Penn Leisure loses ESPN, Barstool, strikes on to theScore Wager
ESPN is the second well-known associate that Penn has parted methods with within the final 5 years. If this have been a relationship historical past, I would not say Penn are poisonous, however I might say there are indicators, and if you needed to discover a widespread denominator…
Nonetheless, Penn have been nothing however gracious when parting methods. The ultimate hammering out of particulars of this breakup was pretty amicable, and the separation with Barstool in 2023 was downright charitable. Penn famously bought Barstool Sports activities again to founder Dave Portnoy for $1, as detailed right here by Axios.
Penn Leisure ESPN and Barstool timeline
- Jan. 2020: Penn Leisure broadcasts an unique partnership and acquires a 36% stake in Barstool Sports activities to launch Barstool Sportsbook. (Supply: InGame )
- Feb. 2023: Penn bought full possession of Barstool Sports activities, however six months later, bought Barstool again to founder Dave Portnoy for $1 in an effort to pursue a brand new partnership with ESPN. (Supply: Terrible Asserting )
- Aug. 2023: Penn and ESPN enter a 10-year, $2 billion settlement, rebranding Barstool Sportsbook as ESPN Wager and aiming to rival different main sportsbooks. (Supply: The Verge )
- Nov. 2023: ESPN Wager formally launches. (Supply: Yahoo Finance )
- Nov. 2025: Penn and ESPN mutually agree to finish their partnership early. Penn will rebrand ESPN Wager as theScore Wager, and ESPN will associate with DraftKings going ahead. (Supply: Fox Enterprise )
As for this go-round, ESPN CEO Jimmy Pitaro spoke nicely of the Penn collaboration:
“Together, ESPN and PENN created a truly unique offering with unparalleled integrations across our various media assets. ESPN drove over 2.9 million new users into the PENN ecosystem, with a strong uptick in first time bettors this fall. We appreciate the collaboration we had with PENN and are now pursuing other media and marketing opportunities within this space,” Pitaro was quoted by Penn for his or her. Nov. sixth press launch.
Penn will proceed as an promoting associate of ESPN’s, and can maintain the ESPN Wager buyer database, which it should fold into Canadian sportsbook theScore Wager beginning Dec. 1st. Penn acquired Rating Media and Gaming Inc. (SCR) for $2 billion in 2021.
Extra Sports activities:
- Peacock earnings pressure sudden NBC pivot
- NBC modifications beloved NBA broadcast format, confuses followers
- Invoice Simmons calls for change from sportsbooks after betting scandal
An fascinating takeaway: Penn’s transfer to theScore signifies a major course correction. They are going to evidently not be specializing in nationwide advertising and marketing, as they have been with ESPNBet. As a substitute, they are going to be extra selective, zeroing in on states the place they have already got casinos (see their map).
ESPN will proceed to combine their on-line and cell platforms with DraftKings, so it will be even simpler to verify your scores, then slip into inserting a guess.
Joking, however probably not – that is precisely what they need, it doesn’t matter what moralistic hyperbole their morning discuss present hosts profess.
Associated: NBC modifications beloved NBA broadcast format, confuses followers
