In a strategic move into the realm of sports gambling, Penn Entertainment has officially rolled out ESPN Bet after acquiring naming rights from The Walt Disney Company for a substantial $1.5 billion in August. The agreement outlines that Penn will oversee the sports gambling operations, collaborating with ESPN to promote the service across its various platforms. Initially, ESPN Bet will be accessible in 17 U.S. states.
ESPN Bet marks Penn's rebranding of the existing sports-betting app, Barstool Sportsbook, which was subsequently sold back to its founder, Dave Portnoy. Securing the rights to the ESPN brand for a decade, with the option of extending for an additional 10 years, Penn Entertainment's agreement with Disney also includes a provision for Disney to acquire $500 million worth of shares in Penn if it decides to do so.
This venture marks a notable departure for Disney, which has historically distanced itself from affiliations with sports gambling, despite ESPN's status as a major sports network. The deal with Penn signals a shift, with ESPN emphasising its commitment to leveraging its platforms for responsible gaming education.
As ESPN Bet enters the sports gambling arena, it brings a significant player into the rapidly evolving landscape, with Penn Entertainment poised to make a lasting impact on the industry.