ESPN partners with DraftKings for exclusive sports betting deal after nixing agreement with PENN
Roughly an hour after severing ties with PENN Entertainment, which axed its own gambling platform, ESPN announced they would be partnering with DraftKings.
Starting next month, DraftKings will be the exclusive sportsbook and odds provider for ESPN, with a "full rollout" next year, according to a release.
"Our betting approach has focused on offering an integrated experience within our products," said ESPN chairman Jimmy Pitaro. "Working with DraftKings, a leader in the space, will allow us to build upon that foundation, continue to super-serve passionate sports fans and grow our ESPN direct-to-consumer business. We are excited about this new collaboration with DraftKings."
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"ESPN’s unmatched visibility across the world of sports make this collaboration a natural fit," said Jason Robins, CEO and Co-Founder of DraftKings. "As an innovative leader in digital sports entertainment, DraftKings is uniquely positioned to integrate our technology and products with ESPN’s iconic brand and storytelling power. Together, we’re delivering a seamless, engaging, and responsible experience that elevates how fans connect with live sports."
DraftKings will also be featured in ESPN's app, and ESPN Bet will "shift to a sports betting content brand with" DraftKings.
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ESPN officially launched into the sports betting realm in August 2023 with its PENN Entertainment partnership. Thus, ESPN Bet was born. The deal was reportedly worth $2 billion over 10 years. However, the deal with PENN will end just two years in.
Additionally, ESPN is set to own and operate NFL RedZone and other NFL media in exchange for a 10% stake in the company, which has since raised ethical red flags.
DraftKings was founded in 2012 originally as a daily fantasy sports space, but turned into a casino and sportsbook as sports gambling became more prevalent, and legalized, in the United States.
DraftKings operates in 28 states, Washington D.C. and Ontario.
Fox Business' Ryan Gaydos contributed to this report.
