ESPN and Penn Entertainment have decided to end their sports betting partnership early. This means that ESPN Bet will close by December 1, 2025. The partnership, which began in 2023 with a ten-year goal, ran into problems like poor market performance. Additionally, a tumultuous NBA gambling scandal involved several players and coaches.
The original deal said that either side could leave after three years if certain market share goals were not met. After more than two years of discussion, Penn Entertainment has decided to change the name of the sportsbook to theScore Bet. In the meantime, the company will focus on growing its iCasino business. Jay Snowden, the CEO of Penn, said that things were getting better. However, he also stressed that both sides agreed to end the alliance, which was a sign of a strategic digital shift.
This shutdown comes at the same time as an ongoing FBI investigation into illegal gambling rings. These rings are linked to NBA insiders. High-profile figures like Chauncey Billups and Terry Rozier have been arrested. This has sent shockwaves through the sports and betting industries. Jimmy Pitaro, the chairman of ESPN, said that ESPN Bet added almost three million new users. Yet, the company is now looking into other media and marketing opportunities in sports betting.
The fallout shows how hard it is to combine sports media and betting companies. This is especially true when there are more rules and ethical issues because of insider scandals. ESPN’s early exit shows how hard it is to keep sports betting sites connected to mainstream sports media during times of trouble.
