Disney’s ESPN and PENN entertainment in $2 billion deal
Disney’s ESPN has just announced an agreement with PENN Entertainment to Launch ESPN BET in the autumn. PENN will rebrand its current sportsbook, available in 16 states and currently known as Barstool Sportsbook, to ESPN BET. This change comes less than six months after PENN acquired Barstool, a sports gaming and entertainment site founded in 2003.
As part of the deal, PENN will pay ESPN $1.5 billion over a 10-year period and c.$500 million of warrants to buy PENN common shares that will be vested over the same timeframe. The deal gives PENN exclusive right to the ESPN Bet trademark in the U.S. for a 10-year period, with the possibility of a 10-year extension subject to mutual agreement.
In compliance to ever-growing concerns related to responsible gaming, the announcing the deal declares that “ESPN will use its platforms to educate sports fans on responsible gaming”. Among the strategies, it includes “the implementation of responsible marketing policies and guidelines to safeguard fans” and “working with industry experts on best practices and continual review of responsible gaming programming.”
Jimmy Pitaro, Chairman, ESPN, said, “The strategy here is simple: to give fans what they’ve been requesting and expecting from ESPN. PENN Entertainment is the perfect partner to build an unmatched user experience for sports betting with ESPN BET.”
Jay Snowden, CEO and President, PENN Entertainment said that the agreement will allow PENN and ESPN to “utilise each other’s strengths to create the type of experience that existing and new bettors will expect from both companies, and we can’t wait to get started.”
The deal marks a landmark move for Disney’s sports cable network’s continuing efforts to expand its streaming platform ESPN+.
Sports betting has been legal in the US since 2018 following the US Supreme Court ruling which quashed a federal ban. In 2019, Disney acquired a 5% share in DraftKings, currently the leader in the US sportsbetting market together with FanDuel.
SiGMA’s regional summit in Limassol, Cyprus
SiGMA Balkans/CIS is only a few weeks away. It will be held at the City of Dreams, Europe’s first integrated resort from the 04 – 07 September.
Industry operators will be able to connect with leading affiliates and two conference stages will feature a number of high-profile guest speakers. There will also be an expo floor, including the SiGMA Startup Village. So much more is happening in Limassol! Check out all the details here.
