• Loading stock data...
Thursday, May 29, 2025

ESPN, PENN Entertainment Looking To Break Sports Betting’s Duopoly

  • FanDuel, DraftKings currently hold a combined market share of more than 70%
  • Depth of ESPN’s efforts at user conversion will heavily influence ultimate success of deal
Disney
Ron Chenoy-USA TODAY Sports

ESPN’s $2 billion deal with PENN Entertainment to create ESPN Bet represents a massive bet on its ability to break what has quickly become a U.S. sports betting duopoly between FanDuel and DraftKings.

In the five years since the U.S. Supreme Court allowed individual states to set their own sports betting rules, FanDuel and DraftKings have used large marketing spends and their existing presence in fantasy sports to collectively control more than 70% of the domestic online sports wagering market. Including Caesars and BetMGM, the combined market share reaches about 90%, leaving any other operator competing for scraps.

Even as key new states such as New York have entered the market over the past two years, FanDuel and DraftKings quickly established the same level of market dominance, helping lead to the demise of a growing series of former challengers including MaximBet, Fubo Sportsbook, Churchill Downs, theScore, and most recently, Fox Bet.

“Best case, at least in the short term, is ESPN and PENN getting on the podium,” into third place, Dustin Gouker, a sports betting consultant and longtime gaming journalist, told Front Office Sports. “PENN clearly calculated there was far greater upside in this deal than staying with Barstool, and they may have already hit a ceiling with Barstool. So PENN is clearly saying ESPN is the bigger brand, which it obviously is, and that they can go further now.”

Exactly how much further rests in large part on how aggressively ESPN puts its marketing muscle behind the pact. The PENN Entertainment deal specifically calls for high levels of content integration for ESPN Bet within ESPN’s ecosystem and access to network talent.

But the forthcoming NFL season — set to be a major sports betting event and roughly coinciding with the fall debut of ESPN Bet — will serve as a critical indicator on the depth of ESPN’s intentions with this deal.

“What I’m looking to see is how motivated ESPN really is in helping to convert users,” Gouker said. “If they really get behind this, there’s certainly room for growth.”

That growth, however, could be additionally challenged by not only the established incumbents, but by Fanatics, newly buttressed with its $225 million purchase of PointsBet’s U.S. operations.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

NBA East Finals Delivers Strong TV Ratings, but West Is Struggling

The Knicks and Thunder are both up 3–1 in their conference finals series.
Feb 14, 2024; Kansas City, MO, USA; A general view of the Kansas City Royals 1985 and 2015 World Series championships on the scoreboard at Kauffman Stadium at the Truman Sports Complex.

Chiefs, Royals Stadium Public Funding Standoff Nears Endgame

Missouri legislators will review stadium bonds for the Chiefs and Royals.

WNBA Finds No Proof of Racist Comments at Sky-Fever Game

The Chicago Sky did not respond to a request for comment.

Featured Today

How Rolex Paved the Way for Luxury’s Love Affair With Tennis

“It’s almost impossible to think about tennis without thinking about Rolex.”
Mar 23, 2025; Miami, FL, USA; Alexandra Eala (PHI) reacts after winning a point against Madison Keys (USA)(not pictured) on day six of the Miami Open at Hard Rock Stadium.
May 24, 2025

Alex Eala Is Defying Her Country’s Odds to Make French Open History

The Philippines native has overcome a unique set of financial odds.
May 24, 2025

Indiana Is the Center of the Basketball Universe—Thanks to Both Pro Teams

The Fever and Pacers are thriving at the same time.
Around the Horn - October 26, 2020
May 23, 2025

‘Quirky, Nutty, Bombastic’: 10 ‘Around the Horn’ Faces on Their Top Moments

“A quirky, nutty, bombastic, mostly wrong, sometimes right, crazy sports family.”
United States District Court, District of New Jersey. Federal Courthouse in Newark. on Thursday Feb. 11, 2021. Newark Federal Courthouse
April 29, 2025

Kalshi Gains More Legal Momentum With Early New Jersey Win

Kalshi has begun racking up early legal victories as it defends its sports event contracts.
Sports are shown on TVs behind a bar as guests enjoy the grand opening of DraftKings Sports & Social in Ohio.
May 9, 2025

DraftKings, FanDuel Interested in Sports Prediction Markets

Sports betting giants are eyeing sports “prediction” markets.
Sponsored

Game On: Portfolio Players Stories, Brought to You by E*TRADE from Morgan Stanley

In Episode 7 of Portfolio Players, go inside the boardroom with Avenue Capital CEO and former Milwaukee Bucks co-owner Marc Lasry on Giannis’s future, women’s sports, and upstart leagues like TGL and Unrivaled. 
Apr 22, 2025; Los Angeles, California, USA; Los Angeles Lakers guard Luka Doncic (77) shoots the ball over Minnesota Timberwolves forward Julius Randle (30) during the third quarter of game two of first round for the 2024 NBA Playoffs at Crypto.com Arena.
April 23, 2025

Kalshi’s Offensive Blitz Continues With Suit Against Maryland

Kalshi previously sued regulators in Nevada and New Jersey.
The sun rises behind the New York skyline seen from the Jersey City waterfront on Thursday morning Dec. 10, 2020.
April 22, 2025

N.Y. Sports Betting Faces Major Limits Under New Proposal

Newly proposed legislation would impose daily betting caps and limit advertising.
April 16, 2025

Sports Prediction Markets Still Face Legal Roadblocks

The Wire Act and tribal sovereignty could be the next legal battlegrounds.
April 14, 2025

Bank Says Sports Betting Could Weather Tariff Storm

Lower tax revenues could encourage more states to legalize sports betting.