ESPN Bet logo on a laptop placed on Thursday, February 22, 2024 in New York, USA.
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disney’s ESPN changes sports betting partners.
In a separate release Thursday, the company announced it was ending its contract with the company. pen entertainment The agreement was signed several years earlier than planned. draft kings To become ESPN’s exclusive official sportsbook and odds provider.
Both changes will take effect in December.
“Our betting approach is focused on providing an integrated experience within our products,” ESPN Chairman Jimmy Pitaro said in a statement. “Working with DraftKings, a leader in this space, allows us to build on that foundation, continue to provide great service to passionate sports fans, and grow ESPN’s direct-to-consumer business.”
Under this partnership, DraftKings will power ESPN’s mobile betting tab.
“ESPN’s unparalleled visibility in the sports world makes this collaboration a natural fit,” DraftKings CEO Jason Robbins said in a statement. “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.”
ESPN last signed Penn to a deal in 2023 after spending time searching for a gambling partner. Disney had previously said it would not accept bets directly, making a partnership the only viable path for ESPN to enter the burgeoning online sports gambling industry.
Sports betting has become an integral part of ESPN’s direct-to-consumer streaming platform.
ESPN and Penn’s partnership allowed ESPN to rebrand and reboot Penn’s sportsbook (then known as Barstool Sportsbook) as ESPN Bet.
The contract was for 10 years, but allowed for termination after three years if either ESPN or Penn State “failed to meet certain market share performance criteria,” according to a news release.
And on Thursday, Penn and ESPN announced they had agreed to end their partnership after just two years. Penn’s Sportsbook will once again be rebranded as ‘theScore Bet’.
“When we first announced our partnership with ESPN, both sides made it clear they expected to compete for a podium spot in this space,” Penn CEO Jay Snowden said in a news release.
“While we have made significant progress in improving our product offerings and building a consistent ecosystem with ESPN, we have mutually and amicably agreed to scale back our collaboration,” he said.
In the original deal, ESPN agreed to provide Penn with exclusive rights to the sportsbook’s private label, as well as media and marketing services. In return, Mr. Penn agreed to pay ESPN $1.5 billion in cash over 10 years and granted ESPN approximately $500 million in warrants to purchase approximately 31.8 million shares of Penn common stock that vest over the same period.
The companies announced Thursday that Mr. Penn’s annual cash payments of $150 million will be suspended in the fourth quarter, and his warrants to purchase common stock will also be suspended.
