A New Era
ESPN, one of the world’s leading sports brands, has made a giant step into the world of sports betting, announcing a partnership with PENN Entertainment this past Tuesday. This new partnership will see PENN rebrand its current sportsbooks in 16 states. Barstool, PENN’s leading product, will be rebranded as ESPN Bet.
This move marks the beginning of an exciting new era for ESPN Bet and a major move forward for the US sports betting industry. Disney currently owns ESPN, which will mark the entertainment company’s first foray into the betting world.
There has been speculation for several years regarding Disney taking a step into the world of sports betting. In 2021, Disney highlighted ESPN as a potential vehicle for this, with the company also noting how relevant betting was becoming for the under-35 audience in America.
As per the deal, ESPN will take over Draftking as the company’s official sportsbook brand. PENN Entertainment will receive attribution for odds, promotional services, and other products and content integration across ESPN’s platforms.
Dave Portnoy, the founder of Barstool, will buy back 100% of the company’s share capital in exchange for certain non-negotiables and other restrictions.
Huge Potential
ESPN moving into the sports betting scene could seriously shake up the industry in North America. The company is America’s largest sports brand, with over 25 million subscribers to ESPN+ and over 370 million followers across social media platforms.
These fans, according to ESPN chair Jimmy Pitaro, have been wanting access to ESPN sports betting platforms for some time. In a press release, Pitaro said, “The strategy here is simple: to give fans what they’ve been requesting and expecting from ESPN. PENN Entertainment is the perfect partner to build an unmatched user experience for sports betting with ESPN Bet.”
PENN Entertainment is equally as excited about the new deal. Jay Snowden, the company’s CEO, said that this new deal allows them to take a major step forward as an industry leader. He believes that together, the two companies can utilise each other’s strengths and make a huge impact. He finished by saying that they can’t wait to get started.
The Next Stages
Following the announcement, ESPN said they will update people with launch details in the coming weeks and months. As part of the statement, ESPN also addresses their future plans for responsible gambling.
They said the company would work with PENN’s already comprehensive responsible gambling programming and use their own platforms to educate fans about sports betting. An ESPN committee for responsible gambling will be formed.
ESPN has also confirmed its commitment to maintaining the high standard of journalistic integrity it has always displayed when reporting sports and sports betting.
