ESPN Shifts Strategy, Strikes New Multi-Year Deal with DraftKings for Sports Betting

ESPN has announced a major new partnership with DraftKings. The deal makes DraftKings ESPN’s exclusive sportsbook provider. This move ends the network’s previous agreement with Penn Entertainment. It marks a significant shift in ESPN’s approach to the sports gambling market.

The transition is set to begin in late 2025. A full rollout will follow in 2026. According to The Hollywood Reporter, the financial terms were not publicly disclosed. An insider suggests it will be a more lucrative arrangement for ESPN than the prior deal.

Ending the Penn Era and Launching a New Integration

ESPN’s previous deal was with Penn Entertainment. That agreement provided ESPN with annual cash payments. It also involved marketing services under the ESPN Bet brand. That partnership was originally set for ten years but included an early termination clause.

The network exercised that clause after roughly two years. The existing ESPN Bet app, operated by Penn, will now be rebranded. It will become theScore Bet. The ESPN Bet name will live on only within television programming and content.

Starting December 1, 2025, DraftKings will become the new engine. It will power the betting features within the ESPN app. This integration aims to create a seamless experience for sports fans. It is a core part of ESPN’s direct-to-consumer business strategy.

Navigating Scrutiny and Focusing on Fan Engagement

The timing of this announcement is notable. It comes amid a high-profile NBA gambling scandal. Federal authorities recently made arrests in a probe involving illegal betting. ESPN’s coverage of that news was sometimes flanked by its own betting branding.

An ESPN insider told The Hollywood Reporter this deal is unrelated to the scandal. The source stated the change was in the works beforehand. Still, the new partnership may improve the network’s perceived independence.

ESPN Chairman Jimmy Pitaro emphasized an integrated fan experience. DraftKings CEO Jason Robins highlighted the combination of technology and storytelling. The collaboration is framed as a way to elevate how fans connect with live sports responsibly.

This new ESPN DraftKings deal fundamentally reshapes the sports media betting landscape. It positions two industry giants for a deeply integrated future. The partnership will test how seamlessly sports broadcasting and gambling can coexist.

A quick knowledge drop for you

Q1: What does the new ESPN and DraftKings deal involve?

The deal makes DraftKings ESPN’s exclusive sportsbook provider. DraftKings will power the betting tab inside the ESPN app. The multi-year partnership begins its transition in late 2025.

Q2: What happens to the old ESPN Bet app?

The current ESPN Bet app is owned by Penn Entertainment. It will be rebranded as theScore Bet. The ESPN Bet name will only be used for TV shows and content.

Q3: Why did ESPN end its deal with Penn Entertainment?

Financial details were not shared, but reports indicate the new deal is better for ESPN. The prior agreement had an early termination clause. ESPN opted to use it after about two years.

Q4: Is this change related to the NBA gambling scandal?

An ESPN source says the timing is a coincidence. The discussions with DraftKings reportedly predated the recent scandal. However, the new partnership may ease perceptions of conflict.

Q5: When will fans see DraftKings on ESPN?

The initial change is scheduled for December 1, 2025. A full integration will roll out across 2026. The betting features will be built directly into the main ESPN app.