In a move that's currently sending shockwaves throughout the entire industry, ESPN is partnering with Penn Entertainment to start its own sportsbook. ESPN, which is owned by Disney, struck a deal with Penn Entertainment to rebrand Barstool Sportsbook into ESPN BET!
How will this move affect the sports betting industry? Where will ESPN BET be available? Get all of the details of this historic partnership below.
ESPN has entered an agreement with @PENNEntertain to launch ESPN BET, a branded sportsbook in the U.S.
ESPN BET will be available for fans this fall
— ESPN PR (@ESPNPR) August 8, 2023
According to multiple reports, Penn will pay ESPN $1.5 billion in cash over a 10-year period. Penn will also sell Barstool Sports back to Dave Portnoy, who founded the company back in 2003 after leaving the Yankee Group.
News of the deal caused a 30% spike in Penn's stock price (Nasdaq: PENN). This blockbuster deal between ESPN and Penn comes right after Fox Bet decided to shut down its sportsbook at the end of August.
To those in the know, ESPN opening its own sportsbook isn't that big of a shock. The network has been more focused on gambling-related content over the past few years with shows like Daily Wager and segments like Bad Beats with Scott Van Pelt.
ESPN BET will get access to the states that Barstool Sportsbook was already doing business in. That menas folks in Tennessee, Louisiana, Illinois, Indiana, Colorado, Virginia, New Jersey, Pennsylvania, Arizona, Iowa, West Virginia, Michigan, Kansas, Maryland, Ohio, and Massachusetts will be able to bet with ESPN BET once the brand is launched this fall.
This is a huge move for such an iconic name like ESPN, which had partnered with other sportsbooks like DraftKings and Caesars to advertise their betting odds on the network. Now, because of this massive deal, folks will be able to use ESPN BET right on the network's website and mobile app.