### Disney's Strategic Shift: ESPN Partners with DraftKings, Ending Penn Entertainment Deal In a significant move within the sports betting landscape, ESPN has announced a new partnership with DraftKings, making it the exclusive sportsbook and odds provider for the network. This decision comes as ESPN terminates its previous agreement with Penn Entertainment, which was set to last for ten years but is being cut short after just over two years. The new partnership will officially begin on December 1, 2025, and will see the closure of ESPN BET, the network's standalone betting app, which was launched in August 2023. This shift reflects ESPN's strategy to enhance its gambling offerings by integrating DraftKings' services directly into its platforms, allowing for a more seamless user experience [https://finance.yahoo.com/news/disney-end-espn-bet-venture-120958365.html, https://www.cnbc.com/2025/11/06/disneys-espn-penn-entertainment-to-wind-down-espn-bet.html]. ### Overview of the Transition from Penn to DraftKings 1. **Termination of the Penn Entertainment Agreement**: - ESPN and Penn Entertainment mutually agreed to end their partnership, which was originally valued at $2 billion over ten years, after just two years of operation [https://iheart.com/content/2025-11-06-espn-announces-early-termination-of-2-billion-betting-partnership]. 2. **New Partnership with DraftKings**: - DraftKings will now serve as ESPN's exclusive sportsbook, providing a range of betting options and daily fantasy contests through ESPN's platforms [https://apnews.com/article/espn-draftkings-penn-00f71730a06d6f806b1b1ae4c027c59d]. 3. **Closure of ESPN BET**: - The ESPN BET app will be shut down, marking the end of ESPN's standalone betting service, which struggled to gain traction in a competitive market [https://variety.com/2025/digital/news/espn-bet-draftkings-deal-1236571246]. ### Supporting Evidence of the Transition - **Financial Implications**: The original deal with Penn was structured to pay ESPN $150 million annually, but the early termination indicates a strategic pivot in response to market conditions and performance [https://www.thebiglead.com/espn-pulls-plug-on-penn-betting-deal-shifts-to-draftkings]. - **Market Positioning**: ESPN Chairman Jimmy Pitaro emphasized that the partnership with DraftKings will allow ESPN to focus on providing an integrated gambling experience, which is crucial in a rapidly evolving sports betting market [https://www.latimes.com/entertainment-arts/business/story/2025-11-06/espn-takes-name-off-betting-app-and-partners-with-draftkings]. - **Industry Context**: The decision to partner with DraftKings comes amid broader scrutiny and challenges in the sports betting industry, including recent scandals affecting the NBA, which may have influenced ESPN's strategic choices [https://inews.zoombangla.com/espn-bet-shutdown-sports-giant-exits-gambling-amid-nba-scandal]. ### Conclusion: A New Era for ESPN's Betting Strategy In summary, ESPN's transition from Penn Entertainment to DraftKings marks a pivotal moment in the sports betting landscape. 1. **Strategic Shift**: The early termination of the Penn deal and the partnership with DraftKings reflect ESPN's commitment to enhancing its gambling offerings and user experience. 2. **Closure of ESPN BET**: The shutdown of ESPN BET indicates a reevaluation of ESPN's approach to sports betting, focusing on integration rather than standalone services. 3. **Future Outlook**: With DraftKings as its new partner, ESPN aims to leverage its extensive reach and resources to create a more compelling betting experience for its audience. This strategic pivot positions ESPN to better navigate the complexities of the sports betting market while responding to evolving consumer preferences and industry challenges [https://www.bnnbloomberg.ca/business/2025/11/06/espn-taps-draftkings-as-sports-betting-partner-after-ending-penn-deal].