The collaboration between Walt Disney’s ESPN and casino owner PENN National Gaming has resulted in the creation of an innovative online sports betting venture called ESPN Bet.
This partnership aims to revolutionize the sports betting industry, providing sports enthusiasts with a unique and engaging platform to participate in their favorite games.
ESPN and Penn Partnership
The announcement of this partnership led to significant market dynamics, with PENN National Gaming’s shares rising by 20%, reflecting investor optimism about the potential of ESPN Bet. On the other hand, DraftKings, a key player in fantasy sports and betting, experienced a 9% decline in share prices during extended trading.
As part of the collaboration, Penn National Gaming is set to pay ESPN a substantial $1.5 billion in cash and will also provide around $500 million in warrants for purchasing shares over an initial 10-year period. In exchange for this investment, PENN will gain rights to the ESPN Bet brand, promotional services, and other strategic benefits.
“Our agreement with ESPN will provide us access to the largest ecosystem in sports, with 105 million+ monthly unique digital visitors, an audience of more than 370 million across social platforms, 25 million ESPN+ subscribers, and the nation’s #1 fantasy database,” Jay Snowden, Chief Executive Officer and President of PENN, said.
PENN also let go of Barstool Sports, making Dave Portnoy a potential billionaire.
