ESPN Bet Closure and DraftKings Partnership Updates

ESPN has officially announced the closure of ESPN Bet and the end of its partnership with Penn Entertainment. This decision comes just two years after the launch of ESPN Bet, which was part of a ten-year, $2 billion deal with Penn.

According to ESPN chairman Jimmy Pitaro, the network's betting strategy is shifting towards a more integrated experience, which they believe will be better served through collaboration with DraftKings.

The new agreement with DraftKings is an exclusive multi-year deal that designates DraftKings as ESPN's sole official sportsbook and odds provider. This partnership is set to integrate DraftKings into ESPN's platforms starting in December 2023.

Pitaro expressed optimism about this collaboration, stating it would allow ESPN to enhance its offerings for sports fans and continue its growth in the direct-to-consumer space. Jay Snowden, CEO of Penn Entertainment, reflected on the short-lived ESPN Bet partnership, acknowledging that their aspirations did not come to fruition and indicated a mutual decision to move on.

DraftKings, already a major player in the sports betting market with over 10 million customers across the U.S. and Canada, expressed enthusiasm about the partnership. Jason Robins, CEO of DraftKings, highlighted the synergy between ESPN's brand visibility and DraftKings' technology, aiming for a seamless and engaging experience for users.

The official transition could reshape the sports betting landscape, impacting user experience and market dynamics significantly. This is not just a business decision; it reflects a broader trend of consolidation and integration within the sports betting industry, where partnerships are becoming critical for growth and engagement.