ESPN and PENN Entertainment $2 Billion ESPN BET Launch

The world’s leading sports entertainment multi-platform brand, ESPN, has entered a blockbuster agreement with PENN Entertainment, North America’s leading provider of sports content, and casino gaming experiences. The deal of the two prominent gaming industry brands is set to launch the ESPN BET sports betting facility for the United States market. Under the terms of the deal, PENN will reportedly pay ESPN $1.5 billion over the next 10 years and grant warrants to the operator to purchase 31.8 million of PENN shares amounting to $500 million, to be vested over the 10-year period.

PENN’s Sportsbook Rebranded:

Under the agreement, the sportsbook run by PENN Entertainment will be rebranded and launched as ESPN BET still this fall. As announced, the launch will cover a great deal of North American markets featuring the provider’s presence. Indeed, 16 out of 20 US states with legalized sports betting operations and an active PENN’s gaming licenses will be the target of the latest deal closed by the two top-tier industry players. The rebranding of the PENN’s sportsbook into the ESPN BET will extend across all the respective internet and mobile gaming facilities.

Committed to Optimized Services:

Still, ESPN will reportedly continue to meet the demands of its fans simultaneously with the latest extension of the company’s reach through a B2B partnership with PENN Entertainment. The company remains committed to use the expertise obtained by the agreement with the prominent provider to further optimize its industry-leading multi-platform experience. The brand ESPN BET will reportedly become the operator’s exclusive wagering facility, while PENN Entertainment will benefit from odds attribution, promotional services, media and content integrations, and alike.

Commenting on the agreement, Jimmy Pitaro, Chairman, ESPN, reportedly said: “Our primary focus is always to serve sports fans and we know they want both betting content and the ability to place bets with less friction from within our products. 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.”

Jay Snowden, Chief Executive Officer and President, PENN Entertainment added: “This agreement with ESPN and collaboration on ESPN BET allows us to take another step forward as an industry leader. Together, we can utilize each other’s strengths to create the type of experience that existing and new bettors will expect from both companies, and we can’t wait to get started.”

Promising Deal(s):

ESPN BET, as the latest offering from ESPN, is set to meet the fans requirements in the sports betting space. According to the company, PENN Entertainment’s responsible gaming programs will be used by the operator to respectively educate sports enthusiasts on responsible gaming. With a top sports betting facility in hand and the responsible gaming concerns on mind, the product launch seems quite promising.

Another testimony about the commitment of the partners to the latest deal comes from the fact that PENN has recently sold the affiliated sportsbook Barstool Sports to its former owner. As announced on Twitter on 8 August 2023, Dave Portnoy bought back his share in Barstool Sports from PENN and now owns 100% of the company. The sale marks the Barstool owner’s re-establishment of full control over the company and the provider’s dedication to new ventures and prospects. As reported by yahoo!finance, PENN Entertainment shares rose  18% on 8 August 2023 immediately after the news on the ESPN deal.