In a surprising turn of events, PENN Entertainment and ESPN have decided to end their joint U.S. sports betting venture, ESPN BET, a full 7 years ahead of schedule.
This decision, effective December 1, 2025, follows PENN's inability to meet certain market goals specified in its 10-year agreement.
The partnership, launched in August 2023, was a big deal. PENN had the exclusive rights to use the ESPN brand for its online sports betting, a privilege they paid $150 million annually for, along with stock warrants.
According to the deal, either company could opt out after three years if PENN didn't hit specific targets for gaining market share. The partnership initially fueled a surge of over 2.9 million new users to PENN’s platform.
The news comes just a week after ESPN Bet was celebrating huge revenue gains tied to the sports equinox.
What is Penn Entertainment?
PENN Entertainment, formerly known as Penn National Gaming, is a leading American entertainment company specializing in integrated casino gambling, sports content, and sports betting. It operates 43 properties across 20 states under well-known brands such as Hollywood Casino, Ameristar, and Boomtown. PENN also owns the digital media company Score Media and Gaming, giving it a strong presence in sports content and online gaming.
The company offers sports betting in 17 U.S. jurisdictions and operates online casino gaming in five states, with brands including ESPN BET and theScore Bet.
PENN Entertainment partnered with ESPN BET primarily to leverage ESPN's powerful sports media brand, broad audience reach, and marketing capabilities to accelerate growth in the competitive U.S. sports betting market. The partnership gave PENN exclusive rights to use the ESPN BET brand for its online sportsbook, along with access to ESPN’s expansive media platforms, including TV, digital, and social channels for promotional support.
Why Is The Penn Entertainment/ESPN Bet Partnership Ending?
Despite bringing in a large number of new users, the partnership did not meet its financial goals.
PENN has faced tough financial challenges, such as quarterly losses and a heavy debt burden of over $11 billion. With no profits in the past year, the strain on PENN's resources became too great to sustain the partnership.
PENN is now shifting gears and will rebrand its U.S. online sports betting operations to theScore Bet, a name they already use in Ontario.
They plan to make this switch by December 1, 2025, which could coincide with a potential sports betting launch in Missouri. At the same time, they are increasing their focus on their interactive casino business (iCasino) and using their solid foundation as a leading regional casino operator to boost their digital strategy.
Even as the ESPN BET chapter closes, PENN will maintain a business relationship with ESPN, continuing to work together as an advertising client.
As it says goodbye to ESPN BET, ESPN is expected to explore new horizons in sports betting. They will likely look for other media and marketing opportunities to make a mark in this rapidly growing industry.
Which Markets and States are Most Affected by the Partnership's End?
The breakup between PENN Entertainment and ESPN BET will mostly impact the states where they worked together in U.S. sports betting. The main areas affected are:
Big States: Pennsylvania, New Jersey, Illinois, Indiana, Colorado, and Iowa. Here, PENN ran big online and casino betting platforms using the ESPN BET name.
Growing Markets: New York and Michigan, where PENN was starting to get a foothold with ESPN BET, will also see changes as the branding switches.
As PENN moves away from ESPN BET by December 1, 2025, this change will affect customers who bet online or in retail casinos under this brand. States like Pennsylvania and New Jersey, which are some of the largest markets for online sports betting, will feel the shift since they've been major revenue sources for PENN through these platforms.
Illinois, Indiana, Colorado, and Iowa will also notice changes since PENN offered sportsbook services under the ESPN name there too. Now, PENN will bring everything under its own brand, theScore Bet, and focus more on digital growth linked to its own casinos in these states.
Lastly, places like New York and Michigan will see PENN reinforcing its own branding, moving away from using ESPN's name.
Bot Companies Now Focus on the Future
As PENN and ESPN make these strategic changes, they are both setting their sights on new opportunities in the world of online sports betting and beyond.
PENN aims to bounce back with a reevaluated approach, and ESPN is open to the possibilities that lie ahead in the dynamic field of sports wagering. It will be interesting to see how these shifts will affect each company’s standing in a competitive market.
