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Today, DraftKings became the official sportsbook and odds provider of ESPN, a move that comes shortly after ESPN ended its sports betting partnership with PENN Entertainment.
The deal allows ESPN to “super-serve” its sports betting base, company chairman Jimmy Pitaro said.
“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.”
The deal is a wide-ranging one that will impact ESPN’s digital platforms, including ESPN’s app and ESPN Unlimited, as well as the sports network’s responsible gaming initiatives.
DraftKings’ official partnership with ESPN will be effective on Dec. 1, with a full rollout culminating in 2026, ESPN said.
How we arrived at an ESPN-DraftKings partnership
ESPN launched its own sports betting platform, ESPN BET Sportsbook, in late 2023 through a partnership with PENN. The venture didn’t quite pan out as ESPN had hoped, with ESPN BET unable to gain significant market share in the states in which it operated.
In many cases, the platform lagged behind DraftKings, FanDuel, and BetMGM. For instance, ESPN BET pulled in just $23.8 million in gross revenue in New Jersey in September, while FanDuel raked in $318.6 million, DraftKings pulled in $222.4 million, and BetMGM generated $56.9 million.
ESPN’s much-maligned foray into sports betting was largely seen as a letdown, if not an outright failure. So, just hours before the company’s announcement of its DraftKings deal, it ended its partnership with PENN Entertainment, a split PENN CEO Jay Snowden said was amicable.
“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. 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.”
What the DraftKings deal means for ESPN
ESPN will expand its sports betting presence from 19 states to 28 states through its partnership with DraftKings and will connect the brand with DraftKings’ customer base of more than 10 million people.
At launch, ESPN users will be able to access DraftKings’ sportsbook, daily fantasy sports platform, and Pick6. Additionally, DraftKings will run the sports betting tabs on ESPN’s digital platforms, as well as supplement ESPN’s existing responsible gaming resources, DraftKings CEO Jason Robbins said.
“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.”
