In a major shift in the sports betting industry, ESPN has designated DraftKings as its sole “Official Sportsbook and Odds Provider," in a new multi-year deal between the two entities.
The agreement becomes effective on Dec. 1 and supersedes the previous agreement of ESPN with PENN Entertainment, which was a 10-year, approximately $2 billion deal signed in August 2023.
Why the partnership shift?
The new deal highlights the shift in strategy at ESPN. The network is abandoning the idea of running its own branded sportsbook and instead concentrating on integration and user experience through an established provider. The 10-year contract with Penn was ended prematurely by mutual consent, effective Dec. 1, just under two years into the contract.
ESPN Chairman Jimmy Pitaro stressed that collaboration with DraftKings, a leader in the field, will enable ESPN to super-serve avid sports fans and expand our direct-to-consumer business. In the case of DraftKings, this is a high-profile acquisition. The company is already present in 28 US states, Washington, D.C., and Ontario, Canada, and has over 10 million customers on its platform.
What the deal entails
Under the deal:
> Beginning Dec, 1, DraftKings will be the sole sportsbook and odds provider on ESPN platforms.
> The integration will cover the digital platform of ESPN, such as the betting tab in the ESPN app.
> DraftKings will introduce its sportsbook, daily fantasy sports product, and Pick 6 event product to ESPN.
> The entire product rollout will occur in 2026, but features will start in December.
> Both will concentrate on responsible gaming programs, and they will incorporate education and awareness in their joint platforms.
The end of ESPN BET
This action marks the termination of the ESPN BET brand.
The collaboration with PENN is being phased out, and the ESPN BET app will be rebranded.
Under the leadership of Jay Snowden as CEO, PENN admitted that the move was friendly and has since shifted its attention to its casino and online business without the ESPN branding.
Strategic importance to both parties
For ESPN:
> The network has access to an established betting operator instead of developing and operating its own sportsbook.
> By adding betting to its app and platforms, it can engage more and possibly monetize more.
> It is part of the larger ESPN move toward direct-to-consumer products.
For DraftKings:
> The alliance provides unparalleled brand visibility with the "Worldwide Leader in Sports."
> It enables DraftKings to integrate its product into a large media platform, which may speed up the process of acquiring customers.
> The acquisition elevates the company to a top sports-entertainment brand, not just a sportsbook.
Market & regulatory context
Shares reacted slightly Thursday. DraftKings' shares increased by almost 3% following the news.
For now, betting on games keeps changing with the convergence of media networks, sportsbooks and streaming services. The deal’s got an international feel too: DraftKings already operates in Ontario, Canada, so this team-up might shake things up beyond American borders.
Potential risks and watch points
> Timing & rollout: The deal will start on Dec. 1, but full integration will occur in 2026. The anticipated benefits may be derailed by delays or challenges.
> Regulatory climate: Sports betting legislation and licensing differ significantly across jurisdictions; any modifications may impact the implementation or commercialization.
> Brand transition: ESPN must handle the shift off ESPN BET in a way that does not disorient or disenfranchise users.
> Competition: There are other sportsbooks and networks competing as well, so this deal establishes the standard but does not necessarily ensure dominance.
Final thoughts
This historic deal linking ESPN and DraftKings shows how media networks are shifting their stance on gambling. Instead of building their own app, ESPN’s teaming up with an expert player, focusing on what they do best (covering games), while letting someone else handle the betting mechanics.
For followers who like to wager, this change could bring smoother access. Imagine placing bets right inside the ESPN app using real-time lines from DraftKings.
On a larger scale, it shows how deeply gambling is now woven into sports coverage and digital platforms. The success of the deal in terms of increased engagement, higher revenues, and improved user experience will be more evident in 2026.