ESPN and Penn to End Sportsbook Partnership on December 1

The drama over ESPN Bet is coming to a sudden and unceremonious end.

Disney and Penn Entertainment have announced that they will end their partnership to operate the struggling sportsbook. The two sides mutually agreed to end the deal after ESPN Bet failed to turn a profit after three years. The sportsbooks will officially be shuttered on December 1, giving customers time to withdraw funds from their accounts before finding a new sportsbook. 

The announcement brings an end to a months-long fight between Penn and its investors over ESPN Bet. CEO Jay Snowden had been championing the sportsbook and promised it would begin delivering profits in 2026, but several significant investors called the efforts a waste of money. This led to a civil war between the two sides, resulting in changes to the board and public smear campaigns.

Despite the public battle, the announcement was met with surprise this morning. The sportsbook was recently licensed and approved for launch in Missouri, whose market will launch on December 1. The state represented a new hope for the failing sportsbook, but today’s announcement extinguished that. 

Penn will pay Disney approximately $45 million and must stop using the ESPN brand by December 15. Disney will not be allowed to relaunch the sportsbooks for at least 15 months after the deal ends.

ESPN Inks Deal with DraftKings, Penn May Exit Market

With ESPN Bet’s unexceptional run coming to an end, Disney has announced a new deal with DraftKings Sportsbook. The industry-leader will provide odds and become ESPN’s official betting partner. The agreement marks a significant win for both sides, as CEO DraftKings CEO Jason Robins shared in an ESPN press release.

“ESPN’s unmatched visibility across the world of sports make this collaboration a natural fit,” said Robins. “As an innovative leader in digital sports entertainment, DraftKings is uniquely positioned to integrate our technology and products with ESPN’s iconic brand and storytelling power. Together, we’re delivering a seamless, engaging, and responsible experience that elevates how fans connect with live sports.”

While ESPN continues to pursue a presence in the US sports betting industry, Penn Entertainment may be getting out. While the company is a worldwide gambling leader, ESPN Bet is its second sportsbook to fail in the US. Barstool Sportsbooks, which ESPN Bet replaced, decided to end its deal with Penn after issues over advertising and marketing regulations.

Many Penn investors have expressed frustration with Penn’s foray into sports betting, making them unlikely to support a new sportsbook venture. The brand has also formed an unfortunate reputation after its second failed platform, making it unlikely that other major US brands will consider a partnership anytime soon.