The big news out of ESPN last week was that the network was partnering with Penn Entertainment to launch a branded sportsbook later this year. But it turns out The Worldwide Leader could have milked the cash cow for a bit more than what they got.
Reporting from Front Office Sports indicated ESPN only got about half of what it originally sought when trying to ink a 10-year deal to launch a sportsbook. The deal ESPN struck with Penn is worth about $2 billion over the next decade.
ESPN had reportedly been in talks with other potential partners, but it appeared the network wasn’t going to get the deal it wanted.
The goal for ESPN and Penn becomes gaining a larger market share in the sportsbook space. Currently, FanDuel and DraftKings dominate the market share across the country. Penn believes through this ESPN partnership that a 20% market share can be achieved in the next four years.
