The ESPN Bet Sportsbook at Hollywood Casino Columbus in Ohio.

By Chris Spiker From Daily Voice

ESPN is ending its own sportsbook and shifting to DraftKings, a major change in the sports betting industry as several gambling investigations rock basketball.

Penn Entertainment and ESPN announced the early end of their exclusive US online sports-betting partnership valued at roughly $2 billion on Thursday, Nov. 6. The ESPN Bet sportsbook will officially be rebranded on Monday, Dec. 1.

A few hours later, ESPN said DraftKings will become its official sportsbook at the start of December. Odds from DraftKings will appear inside the ESPN app, with full integration expected in 2026.

DraftKings has more than 10 million customers in 28 states, including Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Virginia, and Washington, DC.

"Our betting approach has focused on offering an integrated experience within our products," said ESPN chair Jimmy Pitaro. "Working with DraftKings, a leader in the space, will allow us to build upon that foundation, continue to super-serve passionate sports fans and grow our ESPN direct-to-consumer business. We are excited about this new collaboration with DraftKings."

Founded in 2012 as a daily fantasy sports platform, DraftKings is the country's second-largest sportsbook, with a 25% market share, CBS Sports reported in March. The Boston-based company only trails FanDuel, which has a 43% market share.

DraftKings CEO Jason Robins called ESPN "a natural fit." 

"As an innovative leader in digital sports entertainment, DraftKings is uniquely positioned to integrate our technology and products with ESPN's iconic brand and storytelling power," Robins said. "Together, we're delivering a seamless, engaging, and responsible experience that elevates how fans connect with live sports."

The DraftKings deal will replace ESPN's 10-year agreement with Penn that was signed in 2023. Penn was given the right to use the ESPN Bet brand in exchange for $150 million a year, CNBC reported.

The agreement allowed either company to end the partnership if the Wyomissing, Pennsylvania-based sportsbook failed to reach certain market-share goals after the third year.

"When we first announced our partnership with ESPN, both sides made it clear that we expected to compete for a podium position in the space," said Penn president and CEO Jay Snowden. "Although we made significant progress in improving our product offering and building a cohesive ecosystem with ESPN, we have mutually and amicably agreed to wind down our collaboration. We plan to refocus our digital strategy on our growing iCasino business, while continuing to capitalize on our omnichannel advantage as the nation's leading regional retail casino operator."

ESPN's betting shift comes as scrutiny grows over how sportsbooks have partnered with leagues and media companies. In October, two high-profile investigations into NBA prop-bet fixing and rigged poker games netted 34 arrests, including Portland Trail Blazers head coach Chauncey Billups, Miami Heat guard Terry Rozier III, and retired player Damon Jones.

Several college basketball players have either been banned by the NCAA or withheld from games due to similar federal probes into gambling. After clearing the way for college athletes and staff members to bet on professional sports at the start of November, the NCAA has delayed that rule.

Three members of Congress wrote a letter to the NCAA in late October requesting more information about the new betting rule. Southeastern Conference commissioner Greg Sankey has asked the NCAA to reconsider letting college athletes wager on pro games, saying it's "a major step in the wrong direction."

Penn will rebrand ESPN Bet as theScore Bet, matching the identity that the sportsbook uses in Ontario, Canada.