The Penn Entertainment–ESPN partnership, once pitched as a potential 10-year, $2 billion powerhouse, is now ending early. What used to be ESPN Bet has already been rebranded as theScore Bet, as Penn retreats back to the brand it actually understands.
DraftKings now steps in as the new official sportsbook and odds provider across all ESPN platforms moving forward.
Key Highlights From the Deal reported by Sportico:
1. DraftKings becomes ESPN’s official sportsbook & odds provider
Starting immediately:
- Odds across ESPN TV, app, digital, and fantasy will be powered by DraftKings.
- This includes sportsbook, daily fantasy, and Pick6 products.
- A full integration rollout is targeted for 2026.
Financial terms of the deal were not disclosed, but here’s the part we do know:
- Penn agreed to pay ESPN $38 million to settle its remaining obligation through November.
- Penn is also paying an additional $5 million to help promote the switch to theScore Bet.
(Yes, Penn is basically paid ESPN to leave. Wild.)
Before Penn entered the picture, DraftKings and Caesars were already “co-exclusive” partners with ESPN… so this is a return to the familiar.
2. DraftKings’ upcoming prediction market will be included
A source familiar with the agreement confirmed the deal includes DraftKings’ new prediction market product, scheduled to launch this winter.
The strategy:
- Launch prediction markets in states where DK Sportsbook isn’t available
- Go straight at Kalshi and Polymarket, who have exploded in the last 18 months
- Use ESPN exposure to immediately turbo-charge interest
ESPN is expected to show prediction-market data next to other game-day indicators, including:
- Fan voting
- ESPN model projections
- Betting splits
This is a massive discoverability advantage for DraftKings, a chance to onboard millions of fans who have never interacted with a regulated event-contract market.
3. ESPN keeps its betting infrastructure, without running its own book
Despite ESPN Bet’s failure, the company spent two years building:
- Internal betting tools
- On-air workflows
- Integrated odds systems
- Fantasy + betting crossover features
ESPN VP of Betting & Fantasy Mike Morrison says all of that will now be reused under the DraftKings partnership:
“We have significant aspirations here. We’re really bullish about the betting business.”
The big takeaway:
ESPN wants to be a betting-content machine, not a betting operator.
DraftKings handles the operations. ESPN handles the eyeballs.
4. DraftKings CEO Jason Robins initiated the deal
According to the reporting, Robins personally contacted ESPN Chairman Jimmy Pitaro earlier this year, after Penn CEO Jay Snowden hinted publicly that Penn might walk away from ESPN early.
DraftKings saw an opening and seized it.
5. DraftKings brings its massive database to ESPN
The benefits ESPN gets from DraftKings:
- Email + in-app promos to DK’s huge customer base
- Boost to ESPN’s direct-to-consumer subscription business
- Existing league partnerships DK already has (NFL, NBA, MLB, NHL, etc.)
- Ability for ESPN to get more creative with betting-focused storytelling and integrations
DK also recently announced a separate deal with NBCUniversal, meaning DraftKings is now positioning itself as the dominant media-integrated sportsbook in the United States.
