• Loading stock data...
Thursday, July 17, 2025

PENN, ESPN Deal Deck Lays Out Vision For Sports Media and Betting

  • Companies project to gain as much as 20% share of sports betting market by 2027.
  • ESPN has the opportunity to earn additional stock warrants in PENN Entertainment.
PENN + ESPN
Graphic by FOS Design Team

ESPN and PENN Entertainment have branded their $2 billion deal to create ESPN Bet no less than “The Future of Sports Media & Betting” and laid out its vision for the agreement in a detailed presentation to investors.

The deal deck, filed with the U.S. Securities & Exchange Commission, provides a window into the ambition the Disney-owned sports media giant and Pennsylvania-based gaming company have for the pact.

Perhaps most notable in the deck is a projection that ESPN Bet will reach as high as a 20% share of the domestic online sports betting market by 2027, an ambitious goal likely requiring breaking into the solid duopoly currently held by FanDuel and DraftKings.

Among the other key deal terms:

  • PENN Entertainment will oversee the daily operations of the Sportsbook and retain all customer data.
  • The agreement looks to leverage PENN Entertainment’s database of 27 million customers and ESPN’s digital portfolio of 370 million social media followers, more than 100 million monthly digital unique users, more than 25 million subscribers of ESPN+, and 11 million for its fantasy mobile app.
  • In addition to the $500 million in committed stock warrants in PENN Entertainment, ESPN can also earn performance warrants of up to 6.4 million additional shares, currently worth about $159 million, based on ESPN Bet market share. Achieving those performance warrants would require ESPN Bet to gain at least 20% market share.
  • PENN Entertainment believes the pact will provide an estimated $500 million to $1 billion in annual, long-term adjusted earnings potential in its interactive segment.
  • ESPN holds an option to appoint a member to the PENN Entertainment board after the deal’s third year or a non-voting observer at any time.

Jay Snowden, PENN CEO and president, called the deal “another major milestone in Penn’s evolution from a pure-play U.S. regional gaming operator to a North American entertainment leader.”

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Jul 15, 2025; Cumberland, Georgia, USA; National League designated hitter Kyle Schwarber (12) of the Philadelphia Phillies hits a home run in the swing off of after the 2025 MLB All Star Game ended in a tie at Truist Park.

MLB All-Star Game Viewership Dips Despite Historic Swing-Off

Game viewership falls 3% despite late dramatics in the unique tiebreaker.
The 153rd Open

Trump Talks Continue, but Turnberry’s Open Return Is Uncertain

Trump Turnberry is still under consideration for future Open Championships.
Mar 31, 2025; Washington, District of Columbia, USA; Miami Heat guard Terry Rozier (2) drives to the basket against Washington Wizards guard AJ Johnson (5) during the first quarter at Capital One Arena.

Terry Rozier’s Attorney Confirms He’s Still Under Federal Gambling Probe

Rozier finished the season playing for the Heat despite the federal probe.

WNBA Attendance at Record Pace Entering All-Star Weekend

The Valkyries have sold out all 11 of their home games.

Featured Today

Jul 21, 2024; Ayrshire, SCT; Xander Schauffele celebrates with Claret Jug after winning the Open Championship golf tournament at Royal Troon.

The Boozy History and Traditions of The Open’s Claret Jug

The Open awards the world’s most famous wine decanter.
2025 PDC World Darts Championship Final - Luke Littler vs Michael Van Gerwen
July 16, 2025

A Teen Darts Prodigy Is Becoming Bigger Than the Game Itself

Luke ‘The Nuke’ Littler is cashing in on his devastatingly accurate shot.
May 31, 2025; Philadelphia, PA, USA; Sydney McLaughin-Levrone (USA) reacts before the women's 100m hurdles during the Grand Slam Track Philadelphia at Franklin Field
exclusive
July 13, 2025

Track’s New Money Is Running Into Old Problems

The sport’s big-money era has hit some speed bumps in 2025.
Bobbleheads are seen at Vintage Indy Sports, Tuesday, April 29, 2025 in Speedway. The local sports memorabilia store opened recently.
July 12, 2025

Baseball’s Bobbleheads Are the Center of the Collectibles Universe

Baseball’s most important keepsake drives long lines—and big business.
A view of the FanDuel Sportsbook betting area at Belterra Park Cincinnati.
July 11, 2025

Flutter Acquires Full Ownership of FanDuel in $1.75B Deal With Boyd Gaming

FanDuel just got a $31 billion price tag.
DraftKings
exclusive
July 14, 2025

DraftKings in Talks to Acquire Prediction Market Railbird Exchange

Sportsbooks and prediction markets are becoming increasingly intertwined.
Sponsored

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

Dealmaker Jeffrey Kaplan maps the evolution of sports as an asset class
Mar 16, 2024; Las Vegas, NV, USA; The BetMGM Sportsbook at the Mandalay Bay resort and casino.
July 11, 2025

Support Grows to Repeal Gambling Tax in Trump Budget Bill

A new bill has been introduced in the Senate.
July 8, 2025

Betway Parent to Complete U.S. Exodus, Blames Tax Volatility

“Recent regulatory developments” were cited. 
Sports are shown on TVs behind a bar as guests enjoy the grand opening of DraftKings Sports & Social in Ohio.
July 7, 2025

California AG Has Declared Daily Fantasy Sports Are Illegal. Now What?

The opinion might spark a broader DFS conversation in the state.
Dec 29, 2024; Philadelphia, Pennsylvania, USA; Dallas Cowboys quarterback Cooper Rush (10) passes the ball against the Philadelphia Eagles during the first quarter at Lincoln Financial Field.
July 3, 2025

California AG Says Daily Fantasy Sports Are Illegal

The AG rejected arguments that DFS are games of skill, not chance.