ESPN strikes $1.5B deal to jump into sports betting with Penn Entertainment

Disney-owned ESPN has licensed its brand for use in a sports betting app, striking a deal in which it will receive $1.5 billion and other considerations from Penn Entertainment.

In return, Penn will rebrand its existing sports betting app as ESPN Bet, which ESPN has agreed to promote across its online and broadcast platforms in order to generate “maximum fan awareness” of the app. The companies said ESPN Bet will also have unspecified “access” to ESPN talent.

The hands-off arrangement appears designed to insulate Disney’s family-friendly image from any potential risk that might arise from ESPN’s involvement in sports betting.

Source: AP – All contents copyright 2023 Associated Press.  All rights reserved.