DraftKings Secures Exclusive Sportsbook Rights with ESPN
DraftKings officially became the exclusive sportsbook provider for ESPN on December 1, 2025. This multi-year strategic agreement grants the operator sole rights to provide odds and betting links across the network. The deal immediately replaces ESPN’s previous arrangement with PENN Entertainment.
Digital Integration and Broadcast Features
The collaboration introduces immediate changes to how fans consume sports content. DraftKings now powers the betting tab within the ESPN app and website. This integration links users directly to DraftKings products, including sports betting and Daily Fantasy Sports.
The system allows viewers to view lines and place wagers without leaving the ESPN media ecosystem.
Television broadcasts also reflect this switch. DraftKings now provides the official odds and statistical data used in game coverage and studio shows.
This replaces the trading data previously supplied by PENN. Viewers will see these updates on daily programs immediately. The deal also brings specific wagering products to the screen.
DraftKings introduced exclusive parlay bets tied to specific ESPN talent and shows. Programs like First Take, Get Up, and NFL Live now feature custom wagering options tailored to their on-air discussions.
Marketing rights are a major component of the agreement. DraftKings holds exclusive privileges for digital sponsorships across the sports properties of ESPN and NBCUniversal. The full technical rollout for all planned features will continue through 2026.
The Collapse of the PENN Partnership
The start of this new era marks the end of a costly experiment for PENN Entertainment. PENN and ESPN announced the termination of their 10-year, $1.5 billion contract after roughly two years.
The decision dissolved the ESPN Bet project effectively on December 1.
PENN initially targeted a market share between 10% and 20% in the U.S. betting sector. Actual performance fell well short of those goals. ESPN Bet held a market share of approximately 3% or less.
This low adoption rate made the project a financial drain for the operator. PENN paid $150 million annually for the right to use the ESPN brand. Management determined that continuing these payments without growth was unsustainable.
Investor pressure accelerated the split. Activist investor HG Vora criticized PENN leadership for eroding company value. They noted that billions spent on digital interactive projects like Barstool Sportsbook and ESPN Bet yielded few results.
Following the split, PENN announced a strategy shift. The company will rebrand its U.S. sportsbook operations to theScore Bet. This matches their successful brand in Canada. They will also focus resources on their profitable online casino division, Hollywood iCasino.
DraftKings Returns to a Familiar Ally
Industry analysts view the shift to DraftKings as a move toward stability and scale. Jason Robins, CEO of DraftKings, described the deal as a reunion.
The two companies worked together over a decade ago during the rise of daily fantasy sports. Robins noted that DraftKings is “uniquely positioned to integrate our technology and products with ESPN’s iconic brand.”
Technological capability drove the decision for ESPN. Jimmy Pitaro, Chairman of ESPN, stated the network needed a partner that was “scalable.” DraftKings holds a dominant market position alongside FanDuel.
They possess the technical infrastructure that PENN struggled to build. The new deal focuses on deep integration rather than just branding. Robins believes this will engage customers on a “whole new level” by merging content with betting mechanics.
The Financial Settlement
The separation required a clean break between PENN and ESPN. PENN agreed to pay a one-time exit fee of $38.1 million. They will provide an additional $5 million for media support.
ESPN retains the warrants to purchase PENN stock acquired during the original deal.
PENN keeps one key asset from the failed venture. The operator retains the database of 2.9 million digital users acquired during the partnership. PENN plans to migrate these accounts to its upcoming theScore Bet platform.
Mike Morrison, Vice President of Sports Betting at ESPN, called the switch to DraftKings “absolutely the best next step” for the network. He emphasized the need for a partner that prioritizes innovation and operates at a similar scale to ESPN.
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