TLDR
- DraftKings becomes ESPN’s exclusive official sportsbook and odds provider starting December 1, 2025, replacing Penn Entertainment in a multiyear deal
- ESPN and Penn Entertainment mutually agreed to terminate their 10-year partnership early, with Penn originally paying ESPN $150 million annually
- DraftKings products including sportsbook, daily fantasy, and Pick6 will integrate across ESPN’s digital platforms with full rollout expected in 2026
- Penn Entertainment retains customer data from nearly 3 million ESPN BET sign-ups and will rebrand to theScore Bet by December 1
- DraftKings stock rose nearly 3% on the news while Penn Entertainment shares dropped nearly 5% in early trading
DraftKings shares jumped nearly 3% in early trading after landing a new partnership with ESPN. The sports betting company will become ESPN’s exclusive official sportsbook and odds provider starting December 1, 2025.
The announcement came the same day ESPN and Penn Entertainment ended their existing partnership early. The two companies had signed a 10-year agreement in August 2023 that was supposed to run much longer.
Under the new arrangement, DraftKings will integrate its products across ESPN’s entire ecosystem. The rollout begins in December 2025 with full implementation expected throughout 2026.
Fans will get access to DraftKings’ sportsbook, daily fantasy games, and DraftKings Pick6 through ESPN’s platforms. The integration starts at launch and expands from there.
What DraftKings Gets From the Deal
DraftKings will operate a dedicated betting tab inside the ESPN app. This gives the company direct access to ESPN’s massive audience of sports fans.
The betting company will also promote ESPN Unlimited, ESPN’s new direct-to-consumer streaming product. DraftKings customers will receive special promotional offers for the service.
Neither company disclosed the financial terms of the multiyear agreement. The exact dollar amounts and length of the partnership remain private.
Penn Entertainment Exits ESPN Partnership
Penn Entertainment and ESPN mutually agreed to terminate their exclusive U.S. online sports betting deal early. The original agreement had Penn paying ESPN $150 million per year in cash.
Penn also gave ESPN warrants to purchase common stock as part of the deal. The partnership included media and marketing services along with exclusive rights to the ESPN BET trademark.
The original contract allowed either party to exit after three years if market share targets weren’t met. Both companies exercised this option ahead of schedule.
ESPN will keep vested warrants giving it the right to buy almost 8 million Penn shares at roughly $28.95 per share. All unvested and performance warrants get forfeited.
Penn’s payments to ESPN stop in the fourth quarter of 2025. The ESPN BET platform will rebrand to theScore Bet by December 1.
Penn retains valuable customer data from the partnership. The company keeps information from nearly 3 million ESPN BET sign-ups, including 300,000 new users from the recent football season.
ESPN will repurpose the ESPN BET brand for its betting content. The brand will appear on TV shows, online articles, and social media posts that direct users to DraftKings Sportsbook.
Penn Entertainment shares fell nearly 5% in early trading after the announcement. The stock has lost nearly 23% of its value over the past 12 months.
DraftKings stock has declined 27% in the last year despite the positive news. Penn will continue as an ESPN advertising client going forward.
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