ESPN launched ESPN Bet with the help of Penn Entertainment in 2023 after initially starting out under a different name in 2020, with an aim toward keeping pace with the rapidly expanding sports betting industry.
Less than two years after ESPN Bet was formed, ESPN is moving on and has a new betting partner.
The network agreed to a deal with DraftKings on Thursday, making the longtime betting powerhouse its official sportsbook and odds provider in an agreement that will mark the end of ESPN Bet.
Here's what you need to know about ESPN's DraftKings deal and the fate of ESPN Bet.
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ESPN Bet's status?
ESPN Bet is set to shut down once a new ESPN agreement with DraftKings goes into place on Dec. 1, 2025.
The agreement, which was announced Thursday, will make DraftKings the official sportsbook of ESPN and turn ESPN Bet into an avenue for that partnership, rather than allowing it to continue operating as its own sportsbook.
"ESPN BET will shift to a sports betting content brand with DraftKings Sportsbook integrations," the network said in a release, indicating the ESPN Bet branding might stick around without operating as a sportsbook.
Once the calendar turns to December, expect ESPN to utilize DraftKings for its betting content, with the sportsbook becoming the network's official odds provider.
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ESPN Bet Explained
ESPN Bet was ESPN's own sportsbook, operated by Penn, for nearly the last two years. In an era in which sports betting was exploding, ESPN attempted to corner the market with a sportsbook of its own and compete with some of the biggest brands.
ESPN Bet initially launched as Barstool Sportsbook in 2020 through a partnership with Penn, but the sportsbook became property of ESPN in 2023 after Barstool was sold back to founder Dave Portnoy.
ESPN Bet officially launched on Nov. 14, 2023, after a 10-year deal was reached between ESPN and Penn, but the experiment ultimately ends just two years into the agreement after the sportsbook struggled to rival DraftKings and FanDuel.
ESPN-Penn deal value?
ESPN's deal with Penn was worth $2 billion over 10 years.
Penn intended to cut into some of the success of DraftKings and FanDuel and take over about 20 percent of the betting market share by 2027, according to Front Office Sports, but those goals were never close to becoming reality. Instead, ESPN Bet never became a serious competitor to those two mega brands and could only claim a percentage of the market that sat in the low single digits.
ESPN's DraftKings deal explained
ESPN announced Thursday that it has struck a deal to make DraftKings its official sportsbook and odds provider. While that might not change the experience much for DraftKings users, anyone who watches, listens to, or reads ESPN content may start to hear DraftKings odds and other references as the two sides begin their partnership.
"DraftKings entertainment products will be exclusively integrated across ESPN’s ecosystem with a full rollout expected in 2026," ESPN said in a release. "Fans will be able to enjoy betting features and access to offerings including DraftKings’ sportsbook, daily fantasy, and DraftKings Pick6 at launch."
ESPN DraftKings deal
There are no publicly available details on the value of the deal between ESPN and DraftKings, though Front Office Sports reports the agreement is a "large-scale, multiyear partnership."