PENN Entertainment and ESPN have mutually agreed to end their exclusive U.S. online sports betting agreement a full seven years ahead of schedule, marking a significant shift in both companies’ approach to the rapidly evolving sports wagering landscape. The termination will take effect on December 1, 2025.
The two companies originally entered into the deal in August 2023. PENN paid ESPN $150 million annually for media and marketing services, as well as exclusive rights to use the “ESPN BET” trademark. The 10-year deal also included warrants for ESPN to purchase PENN stock. Also a clause allowing either side to exit after three years if certain market share thresholds weren’t met.
“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 PENN Entertainment President and CEO Jay Snowden. “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.”
Snowden said PENN will now focus on its growing iCasino business and leverage its omnichannel advantage as a leading regional casino operator. He also confirmed plans to rebrand its U.S. online sports betting product to theScore Bet beginning December 1, 2025. Coinciding with the anticipated launch of legalized sports betting in Missouri.
TheScore Bet already operates in Ontario. PENN plans to unify its online betting products across North America through integration with theScore’s media app, which has roughly four million monthly active users. Snowden emphasized that this strategy will provide “a top-of-funnel cross-sell opportunity” for PENN’s Hollywood-branded iCasino products.
ESPN Chairman Jimmy Pitaro praised the collaboration between the two companies. Crediting the partnership with driving millions of new users into PENN’s ecosystem.
“Together, ESPN and PENN created a truly unique offering with unparalleled integrations across our various media assets,” Pitaro said. “ESPN drove over 2.9 million new users into the PENN ecosystem, with a strong uptick in first-time bettors this fall. We appreciate the collaboration we had with PENN and are now pursuing other media and marketing opportunities within this space.”
All remaining payments from PENN to ESPN will end in the fourth quarter of 2025. ESPN will assist PENN with the transition from ESPN BET to theScore Bet. PENN will remain an ESPN advertising client moving forward.
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