penn entertainment

ESPN Roasted For $2 Billion Betting Partnership

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ESPN has announced that it has partnered with gambling company PENN Entertainment in a $2 billion, 10-year deal to fully break into the sports betting market. PENN will rebrand its Barstool Sportsbook, selling Barstool Sports back to Dave Portnoy in the process, as ESPN Bet. ESPN will receive a base payment of $1.5 billion over the next decade, as well as an additional $500 million for the use of ESPN‘s licenses and services.

The move comes at a turbulent time for the Disney-owned broadcaster. In June, ESPN announced a round of layoffs that primarily affected high-earning on-air talent. Meanwhile, the company also announced the acquisition of Pat McAfee and his brand after McAfee negotiated a buyout with FanDuel. Furthermore, ESPN is reportedly in the running to acquire Shannon Sharpe after his exit from Undisputed and FS1. Now, it appears that they have set their sights on being a major player in the ever-growing sports betting market.

Read More: Stephen A. Smith responds to ESPN layoffs

Reception Cool On PENN Partnership

However, the news has met with overwhelming skepticism and concern. Many have questioned why ESPN has chosen now of all times to push hard into sports betting. Furthermore, many have expressed skepticism that ESPN, with even the backing of a major player like PENN, will be able to hang with the likes of FanDuel and Draft Kings. “I don’t know a single sports fan requesting ESPN Bet. If Barstool (or Fox) couldn’t convert users to sportsbook, why would ESPN? Not to mention the late start and an undifferentiated product. Tough road for Penn IMO,” one X user wrote while highlight part of the announcement that said the move was something fans had been looking for from ESPN.

Furthermore, there are a number of major concerns about how this move will affect ESPN‘s status as a news outlet. Many pointed to the controversy surrounding the NBA Draft as proof of these concerns. Well-regarded NBA journalist Shams Charania, who has a partnership with FanDuel, reported that sources were saying the Hornets were planning to take Scoot Henderson over Brandon Miller. This benefitted FanDuel, who saw a wave of bets on Henderson going second overall. The Hornets took Miller, as most other pundits expected. In short, a major news outlet/broadcaster also being a major sportsbook leads to a massive conflict of interest.

Reactions To ESPN Bet News

What do you think about the announcement? Let us know in the comments.

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Dave Portnoy Regains Ownership of Barstool Sports

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Dave Portnoy is once again the sole owner of Barstool Sports. Founded by Portnoy in 2003, the controversial media outlet had been acquired by gambling company PENN Entertainment earlier this year for $551 million. PENN had purchased a minority stake in the outlet for $163 million in 2020. “PENN Entertainment and Barstool Sports have gone our separate ways,” Portnoy said in a video posted to X. “So that is right, for the first time in a decade, I own 100% of Barstool Sports.”

The move comes after PENN entered into a new agreement with ESPN to rebrand the outlet’s betting content. The division away from Barstool comes as a move to cut ties with the company after the initial relationship caused problems for Penn. “Every time we did something, it was one step forward, two steps back,” Portnoy said in his video announcement on Tuesday. “We got denied licenses because of me. You name it. So the regulated industry probably not the best place for Barstool Sports and the type of content we make.” The relationship had also caused stock prices to tank. Penn’s stock was up 14% in the hours after the new agreement with ESPN.

Read More: Dave Portnoy says Kim Kardashian should be “dragged to jail” if she attends Eras Tour

ESPN Undertakes Major Betting Overhaul

As mentioned, the decision comes after PENN entered into a new agreement with ESPN. Under the 10-year deal, Barstool Sportsbook will be rebranded as ESPN Bet. Per Penn’s announcement, ESPN will receive $1.5 billion as part of the deal and a further $500 million in warrants tied to media, marketing, and other services. The service will be continued to be called theScore Bet in Canada. PENN also operates the theScore media outlet, which primarily focuses on esports coverage on platforms such as YouTube.

“This transformative, exclusive agreement with ESPN marks another major milestone in PENN’s evolution from a pure-play U.S. regional gaming operator to a North American entertainment leader. ESPN Bet will be deeply integrated with ESPN’s broad editorial, content, digital and linear product, and sports programming ecosystem. ESPN Bet will also benefit from PENN’s operational experience, extensive market access and proprietary technology platform, which successfully debuted in the U.S. this July,” said Penn CEO Jay Snowden.

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