ESPN Shifts Sports Betting Strategy, Replacing Its Own Sportsbook with DraftKings as New Partner

ESPN announced it has signed a multi-year arrangement with DraftKings Inc., an online sports betting company, to be the only official sportsbook and odds provider for the network. Starting in December, DraftKings will be part of ESPN’s platforms.

ESPN is reshaping its approach to the rapidly evolving U.S. sports betting market, announcing that its ESPN Bet sportsbook will be phased out as part of a new long-term partnership with DraftKings. The move brings an abrupt end to ESPN’s high-profile collaboration with Penn Entertainment, a deal originally positioned as a major step in integrating sports media and wagering. The new arrangement suggests ESPN has reassessed how best to compete in a market increasingly defined by scale, brand loyalty, and technological sophistication.

End of ESPN–Penn Era

ESPN Bet launched in late 2023 under a 10-year, $2 billion licensing deal between ESPN and Penn Entertainment. The partnership granted Penn the right to use ESPN branding in exchange for fees and equity considerations, while giving ESPN a pathway into the competitive sportsbook marketplace without having to build and operate its own betting platform.

Yet, despite the initial fanfare, ESPN Bet failed to achieve the market impact that was expected. While Penn saw some early surges in betting activity, the product struggled to maintain momentum in a field dominated by DraftKings and FanDuel, which together control a substantial majority of U.S. online betting volume.

Penn CEO Jay Snowden was direct about the results, acknowledging that the company had aimed to become “a podium player” in the space. “It didn’t work out,” Snowden said. “We’re moving on from that. And they are too.”

The termination of the deal comes significantly ahead of schedule, illustrating the challenges of breaking into a crowded market where customer acquisition costs remain steep and brand familiarity must match the product experience.

DraftKings Becomes ESPN’s Exclusive Sportsbook Partner

Under the new partnership, DraftKings will become the exclusive sportsbook and odds provider across ESPN digital properties, studio programming, and live broadcasts. The integration is expected to begin rolling out later in December, with full feature implementation following in early 2026.

DraftKings CEO Jason Robins described the partnership as a “natural fit,” emphasizing the synergy between DraftKings’ technology and ESPN’s deep engagement with U.S. sports culture. With more than 10 million active users across 28 states, Washington D.C., and Ontario, DraftKings enters the deal with both established market presence and operational scale.

For ESPN, the switch marks a recalibration toward leveraging an already proven betting operator rather than building a new one from scratch via a licensing partner. ESPN Chairman Jimmy Pitaro said the transition is aimed at “super-serving passionate sports fans” while building a stronger and more sustainable sports-betting ecosystem within ESPN’s broader media offerings.

Strategic Reset in Sports Media–Betting Landscape

The move highlights a broader pattern: major media companies are increasingly choosing to align with top-tier sportsbook operators rather than attempting to cultivate standalone betting brands. The U.S. market has grown extremely competitive, and bettors now consistently compare features, promos, and reliability across platforms listed among the top best bookmakers before placing wagers.

For Penn, the conclusion of the ESPN partnership marks a significant strategic shift. The company is expected to return focus to its core gaming properties, including retail casinos and its own digital offerings. Whether Penn seeks a new sportsbook brand identity in the near future remains to be seen.

For ESPN and DraftKings, the partnership provides an opportunity to merge content, odds, and wagering into a more streamlined experience—one that could drive stronger engagement and potentially shape new viewing habits as live sports increasingly intersect with real-time interactivity.

Gradual Migration of ESPN Bet Accounts Into DraftKings Systems

The immediate change for users will involve the gradual migration of ESPN Bet accounts and promotional features into DraftKings systems. ESPN programming will begin incorporating live odds, integrated betting flows, and co-branded segments more prominently over the coming months.

The question ahead is whether this partnership can unlock a level of betting-media integration that the ESPN Bet experiment couldn’t fully achieve—one where audiences don’t just watch sports, but interact with them in real time in ways that feel seamless and intuitive.

For now, ESPN and DraftKings are betting that scale, brand power, and technology—not just a logo—are what will define the next stage of sports wagering in the U.S.