ESPN Bet

History

ESPN Bet was born from Penn Entertainment's strategic pivot away from the Barstool Sports brand. In August 2023, Penn sold Barstool Sports back to its founder Dave Portnoy for a nominal fee and simultaneously announced a 10‑year licensing deal with ESPN valued at $1.5 billion, with additional stock options. The agreement gave Penn the exclusive right to use the “ESPN BET” name for its online and retail sportsbook, while ESPN received annual payments and agreed to cross‑promote the sportsbook across its television, digital, and talent‑driven platforms. The rebranded app and website launched on November 14, 2023, in 16 states where Penn already held licenses, expanding to 18 states by early 2024.

Business Model

The product itself was built on Penn's existing sportsbook technology stack, which had previously powered Barstool Sportsbook. It featured a mobile app and desktop site with standard sports betting markets, including moneyline, point spread, totals, parlays, and live in‑play betting. ESPN Bet also integrated with Penn's “Penn Play” loyalty program, allowing customers to earn and redeem rewards across Penn's land‑based casinos. A key feature was FanCenter, a personalized hub within the app that enabled users to quickly find wagers on their favorite teams and leagues, launched in cooperation with ESPN in late 2024.

Market Position and Demise

Despite heavy marketing integration with ESPN—including dedicated segments on ESPN's shows, odds displays on ESPN.com, and talent endorsements—ESPN Bet struggled to capture more than a single‑digit share of the U.S. online sports betting market. Analysts cited intense competition from established leaders DraftKings and FanDuel, as well as a less differentiated product. In November 2025, Penn Entertainment and ESPN mutually agreed to end their partnership early. Penn announced it would transition ESPN Bet customers to its Canadian‑focused theScore Bet brand, which had a stronger technology platform and better market traction. Simultaneously, ESPN agreed to make DraftKings its exclusive official sportsbook and odds provider, effective 2026. The ESPN Bet brand was officially discontinued in December 2025.