ESPN shifts to DraftKings; Penn Entertainment breakup market reacts
The abrupt breakup between ESPN and Penn Entertainment, followed by the immediate announcement of DraftKings as ESPN’s new official betting partner and odds provider, shook up the U.S. iGaming landscape. The move consolidates DraftKings’ position against FanDuel in market leadership, while Penn redirects its strategy toward growing its iCasino and its theScore Bet brand.
November 6 marked a turning point in the U.S. online gambling industry. Minutes after ending its agreement with Penn Entertainment, the sports network ESPN announced a strategic alliance with DraftKings, making it its new official sports betting operator and odds data provider.
The outcome ends the brief history of ESPN Bet, launched in 2023 under a ten-year licensing agreement with Penn, which never managed to surpass 10% of the U.S. market, overwhelmingly dominated by FanDuel (43%) and DraftKings (25%), according to data from Eilers & Krejcik Gaming and Legal Sports Report.
While both parties described the separation as “amicable,” the move represents an immediate strategic reshuffle in a hypercompetitive market. ESPN will now integrate DraftKings’ odds and statistics into its programs, broadcasts, and digital platforms, strengthening its presence on television, radio, and social media. Flagship shows like Get Up, First Take, and NFL, NBA, MLB, and NHL broadcasts are already set to incorporate real-time data from the operator.
Penn’s shift: focus on iCasino and digital independence
Penn Entertainment’s President and CEO, Jay Snowden, explained that the decision aims to redirect digital efforts toward iCasino and to strengthen theScore Bet, its main brand in North America.
“Both parties agreed that the partnership did not achieve the expected results. We made significant progress, but now we want to focus on expanding our online casino business and capitalizing on our leadership position in the physical channel,” Snowden said.
The change comes amid a challenging financial context: Penn reported net losses of USD 865 million in the third quarter of 2025, although its North American iCasino division grew nearly 40% year-over-year, reaching record figures.
According to analysts at Jefferies and Morgan Stanley, the company will bet on strengthening its integrated ecosystem between in-person and digital operations, especially given the possible opening of the sports betting market in Missouri, where it plans to expand theScore Bet.
DraftKings and ESPN: a media heavyweight alliance
For DraftKings, the new partnership represents an unprecedented expansion opportunity. Co-founder and CEO Jason Robins highlighted that ESPN provides a unique platform to consolidate its leadership:
“Partnering with a brand of ESPN’s reach and credibility allows us to amplify our customer base, strengthen engagement, and attract new users across the country,” Robins stated during the third-quarter earnings conference.
DraftKings will now seek to boost its audiovisual presence, an area where FanDuel holds an advantage with its FanDuel TV and FanDuel+ channels, dedicated 24/7 to sports broadcasts and live betting. The operator, which already controls a quarter of the market, bets that ESPN’s multi-platform exposure will help it close the gap with its rival.
The alliance also coincides with DraftKings’ recent move into the prediction markets segment, after acquiring Railbird Technologies in October, developer of the Railbird Exchange platform, aiming to offer bets based on event predictions and alternative markets.
A market in transformation
The end of ESPN Bet symbolizes more than just a rebranding: it marks the start of a new phase of concentration and maturity in the U.S. online betting market. According to Vixio GamblingCompliance, the sector projects to exceed USD 25 billion in gross annual revenue by 2026, driven by state expansion and the convergence of media, technology, and gaming.
For Penn, the challenge will be to rebuild its digital position without ESPN’s media support, while DraftKings capitalizes on the network’s enormous reach to reinforce its narrative of innovation and leadership.
The battle between FanDuel and DraftKings thus enters a new chapter, with ESPN as a catalyst for a scenario that promises to redefine the rules of iGaming and sports betting in the United States.
Tags: United States, iGaming USA, ESPN, DraftKings, Fanduel