The new ESPN Bet sportsbook will cause the network to lose its existing deals with DraftKings and Caesars, including the termination of ESPN’s Las Vegas content studio located at the Linq Hotel + Experience, a Caesars property, sources close to the situation told Front Office Sports.
ESPN’s “Daily Wager,” a sports gambling show launched in 2020, is shot at the 6,000 square-foot Linq studio on the Las Vegas strip. The show airs on ESPN2 but will need a new production home as the network’s deal with Caesars comes to an end in favor of casino competitor PENN Entertainment.
In 2020, ESPN signed multi-year sports betting sponsorships with both Caesars and DraftKings. Both deals will begin a winding down period as ESPN transitions to ESPN Bet through its new 10-year deal with PENN Entertainment, a source close to the matter told Front Office Sports. That deal will pay ESPN $2 billion in cash and PENN stock.
Other sports betting companies can still purchase advertising spots on ESPN following its deal with PENN. A Caesars representative didn’t immediately respond to an email from Front Office Sports seeking comment.
“We speak to a variety of companies on a regular basis and explore avenues to drive efficiencies for our business,” a DraftKings spokesperson told FOS in a statement.
DraftKings also launched its own video content streaming service in May and has a partnership with Meadowlark Media, the sports media company co-founded by former ESPN president John Skipper and ESPN personality Dan Le Batard.
