Entertainment company and gambling operator PENN Entertainment and sports media conglomerate ESPN have announced a mutual decision to prematurely terminate their exclusive US online sports betting agreement, effective December 1 this year.
The original commercial agreement, which was announced back in August 2023, carried an initial ten-year term and included a clause that enabled either party to end the agreement after the third year if market share targets were not achieved.
Under the T&Cs of the original commercial agreement, ESPN supplied PENN Entertainment with media and marketing support, while also granting the company exclusive rights to the ESPN BET trademark for online sports betting in the US. In return, PENN Entertainment agreed to pay ESPN $150 million annually and issue warrants to purchase its common stock.
Chief Executive Officer and President of PENN Entertainment, Jay Snowden, said, “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.”
He added, “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 refocus our digital strategy on our growing iCasino business, while continuing to capitalize on our omnichannel advantage as the nation’s leading regional retail casino operator.”
PENN Entertainment will rebrand its sportsbook to theScore Bet on December 1 this year, uniting its US and Canadian operations under theScore brand, which already has approximately four million active users.
Jimmy Pitaro, ESPN Chairman, stated that ESPN BET added over 2.9 million new users to PENN Entertainment’s network, alongside pledging continued collaboration during the transition and on advertising initiatives.