ESPN Bet to Exit US Market After Penn, Disney End Partnership

The curious tale of ESPN Bet is set to conclude next month.

Penn Entertainment and Disney have announced a mutual agreement to terminate their sports betting partnership on December 1. Penn had been paying to use the ESPN brand for the sportsbooks, but was ultimately unable to compete with the likes of Fanatics and bet365. 

Disney also announced that DraftKings will become the new official sports betting partner for ESPN.

The Timing is Surprising, the Result Isn’t

ESPN and Penn parting ways is hardly a surprise, given the drama surrounding the platform. Several key Penn investors had been attempting to force CEO Jay Snowden to abandon the failing sportsbook. While the executive believed new investments would lead to profits in 2026, it appears investors and ESPN weren’t sold.

The announcement's timing was completely unexpected. The sportsbooks were recently approved to launch in Missouri when the state's sports betting market launches on December 1. The new market offered ESPN Bet a chance to win over new bettors rather than having to sway users away from rivals.

Is Penn’s Failed Foray Into Sports Betting Finally Over?

Penn Entertainment is the biggest loser from ESPN Bet's failure. It is the second sports betting failure the company has experienced over the last three years, following Barstool Sportsbook's closure on November 14, 2023.

While Penn has found success in online gambling in general, it is clear that they are unable to compete in the crowded US market. The Barstool and ESPN brand names are two of the largest in the US sports market, handing the operators a significant advantage. Unfortunately, bettors were unimpressed with the platform, choosing to place their wagers elsewhere. 

With Penn’s investors souring on sports betting and the company owing Disney another $45 million for the failed deal, it seems unlikely a new partnership will be coming anytime soon.

DraftKings Closes Out 2025 Strong

While Penn is the ultimate loser from ESPN Bet’s failure, DraftKings scored a massive win. The sportsbook will now be integrated with ESPN, giving DraftKings access to ESPN’s large user base. The only one that can compete with FanDuel, and will now gain a new edge through its deal with the worldwide leader of sports. 

The win is the latest in a recent run of success for DraftKings. The company scored a victory in Missouri over the summer when it was awarded one of Missouri’s two untethered sportsbook licenses. This allows them to operate without an in-state partner, pocketing more of the profits. FanDual had also applied for the license, but was rejected in favor of Circa Sports.

DraftKings also recently announced the acquisition of Railbird Exchange, a new prediction market platform. They will soon launch a prediction platform of their own, which is expected to go live around the same time as FanDuel’s.