ESPN Bet launches in US markets

Source: Adobe Stock

ESPN Bet, the sports betting outfit associated with the Disney-owned US sports broadcaster unveiled in August, launched yesterday.

The venture is owned by Penn Entertainment through a US$1.5 billion 10-year licensing deal with ESPN. The outfit will compete for a share of the US$9 billion US sports betting market with established leaders DraftKings and FanDuel.

Sports betting is legal in 26 US states. Penn Entertainment holds licences in 16 of those – Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, New Jersey, Ohio, Pennsylvania, Tennessee, Virginia and West Virginia.

The deal with ESPN sees Penn Entertainment rebrand its existing Barstool sportsbook with a new ESPN-branded mobile app, website and mobile website. A separate theScore Bet sportsbook will continue to operate in the Canadian market

In addition to the US$1.5 billion cash payment, Penn is also granting ESPN approximately $500 million of warrants to purchase approximately 31.8 million Penn common shares that will vest ratably over 10 years, in exchange for media, marketing services, brand and other rights provided by ESPN.

ESPN BET will be ESPN’s exclusive sportsbook, and Penn Entertainment will receive odds attribution, promotional services inclusive of digital product integrations, traditional media and content integrations, and ESPN talent access, among other services that are designed to generate fan awareness of ESPN Bet.