A once-promising partnership between sports media company ESPN and gaming operator PENN Entertainment came to an end on Thursday. The two sides ended a $2-billion, 10-year deal just two years after the ESPN BET brand launched in several U.S. states.
Key Takeaways
- PENN began its venture into online sports betting with the Barstool Sportsbook app in September 2020.
- The gaming operator shifted to the ESPN-branded platform in November 2023 as part of a $2-billion agreement.
- The two sides parted ways on Thursday, leaving PENN searching for its place in the online gaming industry.
ESPN found a new sports betting partner in DraftKings shortly after announcing the end of the deal with PENN, which is transitioning its U.S. operations to theScore brand. It’s been a tumultuous half-decade for casino operator PENN as it continues to try and improve its place in the sports betting and iGaming industry.
Here’s a timeline of events since PENN entered the online sportsbook space:
January 2020: PENN Entertainment announces an exclusive sports betting and iGaming partnership with media company Barstool Sports.
February 2020: PENN acquires 36% of Barstool Sports for $163 million with the intent of turning the brand into its online sports betting platform.
September 2020: Barstool Sportsbook app launches in Pennsylvania, the first market for PENN’s online sports betting platform. Eventually, the Barstool Sportsbook app would expand into 16 other states, including New Jersey, Ohio, Massachusetts, and Michigan.
February 2023: PENN completes a $388-million acquisition that gives the gaming operator full control of Barstool Sports and the betting platform.
July 2023: PENN completes full migration of its U.S. sports betting and iGaming platforms to Barstool in all of its operating online markets.
August 2023: In hopes of catching market leaders FanDuel and DraftKings, PENN strikes a 10-year deal with ESPN, costing the gaming operator up to $2 billion to make the sports media company the new brand for its online sports betting platform. PENN also sells Barstool back to its founder, Dave Portnoy, for $1.
November 2023: PENN officially rebrands its online app as ESPN BET launches in Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, New Jersey, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia. The sports betting platform became No. 1 on the App Store 24 hours after debuting, and retail sportsbooks began shifting to ESPN BET.
February 2024: The final quarter of 2023, the first with the ESPN BET brand, generates $31.5 million in revenue from the Interactive segment, a nearly 85% year-over-year decrease, and an Adjusted EBITDA loss of over $333 million. Promotional costs ran especially high during the ESPN BET launch process.
February 2024: PENN buys Wynn Interactive Holdings’ New York sports betting license for $25 million, with plans to launch ESPN BET in the Empire State before football season.
March 2024: Through ESPN BET’s market-access partnership with Quail Hollow Golf Club, PENN launches in North Carolina, its 18th U.S. market.
June 2024: Reports surface that casino and hotel operator Boyd Gaming has interest in acquiring PENN Entertainment.
September 2024: Following a lengthy regulatory process that delayed the expected launch, ESPN BET finally goes live in New York late in the month, increasing the operator’s reach.
🚨 New York, we’re officially LIVE in the Empire State. 🗽
— ESPN BET (@ESPNBET) September 27, 2024
Download @ESPNBET now! pic.twitter.com/zkHhVd7r2a
October 2024: In New York, the most lucrative sports betting market in the U.S., ESPN BET generates $40.8 million in wagers, seventh-most in a state with nine online operators, and produces $3.2 million in revenue in its first full month.
November 2024: PENN announces that ESPN and ESPN BET accounts can now be linked, integrating the betting experience to be more personalized for fans.
January 2025: ESPN BET becomes the official betting operator of the PGA Tour, and PENN announces an ESPN BET-branded live stream show for six PGA Tour events.
February 2025: After announcing $275 million in interactive revenue and an Adjusted EBITDA loss of $109.8 million in the fourth quarter of 2024, PENN CEO Jay Snowden hints at operational changes if ESPN BET can’t improve its market share, which is below 5%.
May 2025: Facing increased pressure from investors, PENN reaffirms its expectations to be profitable in 2025 after the interactive segment generates its first quarter record revenue of $290 million and lowers the Adjusted EBITDA loss to $89 million.
August 2025: In hopes of creating a product that will bolster market share, PENN launches “FanCenter,” a feature that links ESPN BET and ESPN to allow customers a personalized betting hub, where they can access wagering markets based on their favorite teams, players, and fantasy football rosters.
August 2025: The second quarter of 2025 proves to be PENN’s best yet under the ESPN BET brand as the interactive segment produces a record $316.1 million in revenue and $62 million Adjusted EBITDA loss.
November 2025: PENN and ESPN terminate the sports betting brand agreement. PENN begins migration to theScore platform, which operates in Ontario, while ESPN signs a multi-year agreement to make DraftKings the official sportsbook of the sports media company.
ESPN BET is becoming @theScoreBet this December 🔥
— ESPN BET (@ESPNBET) November 6, 2025
Same account. Same bets. Same wallet. Just a fresh new look… and way more promos 💰
Log in now and grab your 100% profit boost! 📲 https://t.co/M6wbpkBdzu
More action. More rewards. More for you. 📲 pic.twitter.com/mv1Cwxar8B
