TLDR
- ESPN is ending its partnership with Penn Entertainment after just two years, despite the original 10-year agreement, and has signed a new exclusive deal with DraftKings starting in December.
- DraftKings will become ESPN’s exclusive sportsbook and odds provider, powering the betting tab on ESPN’s mobile apps.
- Penn Entertainment will rebrand its sportsbook as theScore Bet and will stop making $150 million yearly payments to ESPN.
- DraftKings reported a Q3 loss of $0.26 per share, missing analyst estimates, and revenue of $1.14 billion, also falling short of expectations.
- Analysts see DraftKings stock with 78.8% upside potential despite the company missing earnings estimates for four consecutive quarters.
DraftKings just landed a major win in the sports betting world. ESPN announced it’s dumping Penn Entertainment and bringing DraftKings on board as its new exclusive sportsbook partner.
ESPN & @DraftKings enter a multi-year agreement
DraftKings will become the Official Sportsbook & Odds Provider of ESPN
Details: https://t.co/1Vx55jBbBc pic.twitter.com/8m9kcEFRjl
— ESPN PR (@ESPNPR) November 6, 2025
The deal kicks off in December. DraftKings will power all betting features on ESPN’s mobile apps.
ESPN Chairman Jimmy Pitaro said the network wants to create a more connected experience for sports fans. Working with DraftKings helps grow ESPN’s streaming business.
DraftKings Inc., DKNG
This isn’t ESPN’s first rodeo with sports betting partnerships. The network teamed up with Penn Entertainment back in 2023, rebranding Barstool Sportsbook into ESPN Bet.
The original Penn deal was supposed to last 10 years. But it included an exit clause after three years if certain performance targets weren’t hit.
Partnership Changes Hands Early
ESPN and Penn pulled the plug after just two years. Both sides agreed to end the partnership on Thursday.
Penn will now rebrand its betting platform again. This time it’s going with the name theScore Bet.
The breakup comes with financial changes. Penn was paying ESPN $150 million annually under the old agreement.
Those payments stop now. ESPN also loses its option to buy shares in Penn Entertainment.
Disney owns ESPN but doesn’t want to run gambling operations directly. Partnerships are the only way for the sports network to tap into the growing online betting market.
DraftKings CEO Weighs In
Jason Robins, CEO of DraftKings, called ESPN’s reach and reputation a natural fit for the partnership. DraftKings will bring its betting technology to ESPN’s platform.
The stock market liked the news. DraftKings shares rose following the announcement.
But the partnership news came right after some rough earnings results. DraftKings reported a Q3 loss of $0.26 per share.
Analysts had expected a loss of $0.24 per share. The company missed estimates by 8.33%.
Revenue hit $1.14 billion for the quarter. That number also fell short of analyst expectations by 5.26%.
Stock Performance and Analyst Views
The company hasn’t beaten earnings estimates for four straight quarters. Revenue estimates have been topped just once in the last four quarters.
DraftKings stock is down about 25% this year. The S&P 500 gained 15.6% during the same period.
Despite the misses, Wall Street analysts remain bullish. The average price target sits at $50.27 per share.
That represents a potential upside of 78.8% from current levels. Analysts view DraftKings as having more room to run compared to Disney and Penn Entertainment stocks.
The consensus EPS estimate for next quarter is $0.71 on revenues of $2.03 billion. For the full fiscal year, analysts expect earnings of $1.13 per share on $6.16 billion in revenue.
DraftKings currently holds a Zacks Rank of 4, which translates to a “Sell” rating. The gaming industry ranks in the top 33% of all Zacks-rated industries.
