DraftKings Becomes ESPN Official Odds Provider as Latter Company Ends Sports Betting Deal
DraftKings will be integrated into ESPN's platforms starting in December, including providing content for the betting tab within the ESPN App.
This news comes as ESPN announced it will be ending its arrangement with Penn Enteratinment, thus shuttering the ESPN Bet sports betting app. Penn will rebrand it as TheScore.
Under the original agreement, ESPN provided Penn with its name and trademark, as well as media and marketing services in exchange for $150 million a year in cash payments and warrants to purchase Penn common stock.
“When we first announced our partnership with ESPN, both sides made it clear that we expected to compete for a podium position in the space,” said Jay Snowden, CEO and President of PENN Entertainment. “Although we made significant progress in improving our product offering and building a cohesive ecosystem with ESPN, we have mutually and amicably agreed to wind down our collaboration. We plan to realign our digital focus on our growing iCasino business, while continuing to capitalize on our omnichannel advantage as the nation’s leading regional retail casino operator.”
Snowden continued, “Looking ahead, we plan to rebrand our OSB offering in the U.S. to theScore Bet®, with a target date of December 1, 2025 to coincide with the expected launch of sports betting in Missouri, subject to regulatory approvals. We currently operate theScore Bet brand in Ontario, and our OSB product across both the U.S. and Canada will now leverage connectivity with the theScore media app, which has approximately 4 million monthly active users across North America. Our OSB offerings will continue to provide a top of funnel cross-sell opportunity for our Hollywood-branded iCasino, which will remain integrated into our OSB product offering in states where legal, in addition to serving as a standalone iCasino app.”
The move comes in the wake of a massive gambling scandal involving the NBA. ESPN is widely considered the top sports news media outlet in the US. Its reporting on the matter drew criticism as ESPN Bet's chyron appeared at the bottom of television screens during the reporting.
In regard to the new DraftKings deal, ESPN chairman Jimmy Pitaro said in a statement: "Our betting approach has focused on offering an integrated experience within our products. Working with DraftKings, a leader in the space, will allow us to build upon that foundation, continue to super-serve passionate sports fans and grow our ESPN direct-to-consumer business. We are excited about this new collaboration with DraftKings."
- Chris Costigan, Gambling911.com Publisher
