Penn Entertainment and ESPN Launch ESPN Bet Across 17 US States
Penn Entertainment launched ESPN Bet on November 9, 2023, converting its Barstool Sportsbook brand across 17 states as part of a 10-year ESPN partnership worth up to $1.5 billion with The Walt Disney Company.
Key Takeaways
- ESPN Bet launched November 9, 2023 across 17 US states
- The Penn Entertainment and ESPN (Walt Disney Company) deal is valued at up to $1.5 billion over 10 years
- ESPN Bet replaced Penn's prior Barstool Sportsbook brand in all markets
- ESPN receives warrants to acquire up to 31.8 million shares of Penn Entertainment
- The partnership gave Penn access to ESPN's sports media audience for brand marketing
Why It Matters — Players
Why It Matters — Operators
Penn Entertainment launched ESPN Bet on November 9, 2023 in 17 US states, replacing its Barstool Sportsbook brand with the co-branded ESPN sports betting product. The simultaneous rebranding converted millions of existing Barstool customer accounts to the ESPN Bet platform.
The product is underpinned by a 10-year strategic agreement between Penn Entertainment and ESPN's parent company The Walt Disney Company, announced in August 2023. Under the terms of the deal, Penn Entertainment pays ESPN up to $1.5 billion over the 10-year term through a combination of cash and advertising credits. ESPN receives warrants entitling the company to acquire up to 31.8 million shares of Penn Entertainment stock at a fixed price — giving Disney a direct financial stake in Penn's betting market performance.
The partnership gave ESPN Bet access to integration across ESPN's television, digital, and streaming properties, providing Penn Entertainment with marketing reach to ESPN's substantial sports media audience. ESPN Bet launched with features including integration with ESPN's SportsCenter and direct links between ESPN's digital content and the betting platform.
Penn had previously acquired Barstool Sports for approximately $550 million and operated the Barstool Sportsbook brand before divesting Barstool Sports back to its founder for $1 and transitioning to the ESPN partnership model.
- Source:
- Reuters
- Published:
- November 9, 2023
- Original Article:
- View Source
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