Penn Entertainment has announced the closure of ESPN Bet, its high-profile sportsbook partnership with ESPN, less than three years after its launch. The collaboration, which cost Penn $150 million annually, fell short of expectations, capturing only 3% of the U.S. sports betting market despite ambitious goals of 10–20%. The decision to terminate the 10-year deal early was mutual and amicable, according to Penn’s third-quarter report.
The shift marks Penn’s renewed focus on iCasino growth and its in-house betting ecosystem. The company plans to relaunch theScore Bet in the U.S. by December 1, coinciding with the start of Missouri sports betting. The existing ESPN Bet app will automatically update to theScore Bet during the transition. Penn’s CEO, Jay Snowden, stated the move will leverage theScore’s media integration boasting over 4 million monthly active users—to create a more efficient, performance-based model.
Penn previously acquired theScore in 2021 for $2 billion but had suspended its U.S. sportsbook to concentrate on the Canadian market. The relaunch represents Penn’s second major restructuring following its 2023 divestiture of Barstool Sports.
Snowden emphasized that Penn will redirect investment toward iCasino and omnichannel experiences through its Hollywood Casino brand and Penn Play loyalty program, which has 33 million members. This strategic pivot is expected to improve profitability and strengthen Penn’s competitive position in North America’s evolving gaming landscape.
The end of ESPN Bet also aligns with a new ESPN partnership with DraftKings, which will integrate DraftKings’ sportsbook and fantasy products across ESPN’s digital ecosystem.
