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

ESPN's West Coast Headquarters
Key Takeaways
- ESPN Bet will close on December 1 across the US
- The sportsbooks had been approved to launch in Missouri on December 1
- DraftKings will be the new sports betting partner of ESPN
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.
Michael is a writer from Denver who covers the sports betting industry for Casino.com. He has been covering the industry for over four years, focusing on providing accurate and easy-to-understand information for readers. When he’s not covering the industry, he’s betting on sports or exploring everything that Colorado has to offer.
Related News

US Senate Considering Proposal to Ban Sports Predictions
A new bipartisan bill has been introduced in the US Senate that would ban sports prediction markets at the federal level. If passed, it would amend the CEA to ensure that sports contracts would no longer be protected.

Mississippi Online Betting Bills Stall in Senate Committee
The Mississippi Senate Gambling Committee is stalling on two mobile betting bills over financial concerns. Doubts over projected tax revenue, as well as proposed cuts for casinos, led the committee chair to shelve both House bills to expand sports betting.

Kentucky Bill Risks Tax Revenue to Fight Prediction Industry
The Kentucky House has passed a bill to overhaul the state's sports betting market and crack down on prediction markets. It would raise the minimum betting age to 21 and force sportsbooks that offer prediction platforms to exit the market.

MLB and NCAA Offer Conflicting Statements Over Predictions
MLB commissioner Rob Manfred and NCAA President Charlie Baker have issued conflicting statements over prediction markets this week. The former embraced the industry with a new partnership to help improve integrity monitoring, while the latter offers the opposite assessment.

Wisconsin Senate Votes in Favor of Mobile Sports Betting
The Wisconsin Senate voted to approve a bill to legalize mobile sports betting through tribal casinos. While many lawmakers remain concerned about the potential impact, they also acknowledged that mobile betting is already taking place in the state.

Nebraska Casinos Begin Effort to Legalize Online Betting
Nebraska casinos have been a signature-gathering effort to allow voters to decide on legalizing mobile sports betting. The move comes after Nebraska lawmakers failed to act, largely removing them from the process of creating a legal framework.

Judge Rules Kalshi is Subject to Ohio Sports Betting Laws
A federal judge has ruled that Kalshi must abide by Ohio’s sports betting laws. She rejected Kalshi’s argument that they are offering “swaps.” The ruling means the operator will need to acquire a sportsbook license for its prediction platform.

Minnesota Senate Reviewing Bill to Legalize Sports Betting
The Minnesota Senate is reviewing a bill to legalize online sports betting while protecting bettors. It would allow for 11 mobile sportsbooks, with tax revenue from the industry being used to support the state’s charitable gaming and horse racing industries.

India Crush Black Caps in T20 Final as NZ Betting Run Ends Badly
New Zealand’s T20 World Cup campaign ended with a heavy final defeat to India, in a result that also gave sports bettors plenty to unpack around pre-match expectations, inflated totals and the Black Caps’ future tournament pricing.

Michigan and Kalshi File Lawsuits Over Sports Predictions
The Michigan AG has filed a lawsuit against Kalshi, alleging it is illegally offering gambling through sports prediction markets. It asks the court to grant it the power to ban Kalshi from offering sports markets in the state.

Vermont Considers Bill to Add Wager Fee and Ban Predictions
Vermont is considering a bill that would ban several categories of prediction markets, including those for sports, deaths, wars, and more. It is also proposing to add a $0.50 per-wager tax for the state’s three mobile sportsbooks.

FanDuel and DraftKings Approved for Arkansas Mobile Market
FanDuel and DraftKings have approval to launch their mobile platforms in Arkansas. The two operators had been avoiding the market over its tribal revenue-sharing requirements. They will be joining tribal-owned BetSaracen, the state's only other online platform.

New Zealand Anthem Gaffe Goes Viral Before England v Black Caps T20 Clash
A technical glitch played the New Zealand anthem at double speed in Colombo, moments before England’s late chase win shook semi-final maths.

Kalshi Taking Utah to Court After Comments From Lawmakers
Kalshi filed a preemptive lawsuit against Utah after top lawmakers expressed opposition to the prediction market industry. The operator feared a cease-and-desist letter would soon be coming, forcing it to shut down the platform in Utah.

Wisconsin Assembly Finally Signs Off on Mobile Betting
The Wisconsin Assembly passed AB 601, which proposes to create a tribal-run online sports betting market. It ends years of debate and stalling from lawmakers, who abandoned hopes for a commercial market. The bill will now head to the Senate.

Kalshi Wins Big in Tennessee, but New Threats Emerge
Kalshi has scored a major legal win in Tennessee, keeping its prediction platform live in the state. However, talks of a ban on predictions in Connecticut and a trademark fight with the NCAA are making the win harder to celebrate.

Winter Olympics Betting Buzz in NZ after Zoi Sadowski-Synnott’s Silver
Zoi Sadowski-Synnott’s silver has lifted Winter Olympics interest in NZ, but only TAB can legally offer and promote sports betting to Kiwis.

South Carolina Lawmakers Hear Debate Over Sports Betting
South Carolina House lawmakers held a hearing on a bill to legalize sports betting, despite Governor McMaster's strong objections to the industry. The Senate is considering a similar bill, with both looking for up to eight sportsbook licenses.

Tabcorp Pays $158,400 after ACMA Probe Finds Illegal In-play Bets
Tabcorp paid a $158,400 penalty after accepting 426 online in-play tennis bets. ACMA will oversee fixes through an enforceable undertaking.

Wisconsin Tribes Ask Lawmakers to Expand Sports Betting
Tribal leaders have asked Wisconsin lawmakers to pass an Assembly bill legalizing mobile sports betting. The session ends next Friday, raising fears that the chamber will adjourn without voting on the issue, as they did in 2025.

CFTC to Begin Fierce Defense of Sports Prediction Markets
CFTC Chair Michael Selig wrote an op-ed in the Wall Street Journal, promising a fierce defense of sports prediction markets here. He ripped states for standing in the way of the industry, which he believes benefits average Americans.

The DIA Orders 20Bet to Stop Targeting Kiwis with YouTube Gambling Ads
New Zealand’s DIA has issued a formal notice to 20Bet over NZ-targeted YouTube promotions, reinforcing the ban on offshore casino advertising.

Big Ten Athletes Join Effort to Reform Player Props
A Big Ten student-athlete group has issued a statement calling on NCAA President Charlie Baker to reform player prop betting rules. The letter cites the link to rising cases of athlete harassment, which Baker has been warning states about.

Kalshi Delivers on High Expectations for Super Bowl LX
Kalshi recorded over $1 billion in trading volume for Super Bowl LX, up 2,700% from last year, driven by expanded markets and improved pricing. The prediction app was downloaded at more than double the rate of DraftKings and FanDuel.

Sports Betting Bill Passes Mississippi House to Start 2026
The Mississippi House has passed HB 1581, which would expand the state’s retail sports betting market to include mobile wagering. It is the second consecutive term a bill has passed the House, but hurdles remain in the Senate.

Guardians’ Emmanuel Clase Spot-Fixing Linked to 48 Games
New documents show federal prosecutors have linked Emmanuel Clase’s point-shaving scandal to 48 MLB games over two years. The large number of affected games is a troubling sign and will further challenge the integrity of the league.

Alabama Considering Bill to Put Sports Betting on the Ballot
The Alabama Senate is considering a bill that would allow voters to decide whether to expand gambling in the state, including a sports betting market. The House has passed several sports betting bills in the past, but the Senate has rejected each.

Milano Cortina 2026: New Zealand Athletes and Betting Markets to Know
New Zealand’s 17-athlete Milano Cortina 2026 team leans heavily into freeski and snowboarding. Here are the events, market types and timing angles NZ bettors track.

Bill to Legalize Online Sports Betting Introduced in Hawaii
The Hawaii Senate is considering a bill to legalize online sports betting. It proposes a market with at least six operators. The 15% annual tax rate and $500,000 licensing fee are intended to secure additional support in the House.

Missouri Sports Betting Market Sees $540 Handle in First Month
The Missouri Gaming Commission reported a sports betting handle of over $540 million for December, the first month of the state's legal sports betting market. FanDuel and DraftKings led the way, but the state generated just $510,000 in taxes.

All Blacks Coach Change - How 2026 Test Odds and Markets Could Shift
New Zealand Rugby has parted ways with Scott Robertson halfway to the 2027 World Cup. Here’s what happens next and what bettors should track in 2026.

Ohio Governor DeWine: Sports Betting Was My Biggest Mistake
Ohio Governor Mike DeWine believes his biggest mistake was legalizing sports betting, citing the rise in problem gambling and betting scandals in the state. He also called for a crackdown on sportsbooks' advertising, which he links to the rise in addiction.

Missouri Sports Betting Market to Allow College Player Props
The Missouri Gaming Commission announced it is rejecting the NCAA's request to ban college player props in its new regulated sports betting market. The regulator cited a lack of evidence on the risk of the bet type for its decision.

