Sportsbook

ESPN to receive US$ 2B by creating sports betting firm with Penn

Friday 11 de August 2023 / 12:00

⏱ 1 min read

(Las Vegas).- ESPN on Wednesday announced a US$ 2 billion deal with Penn Entertainment to launch ESPN Bet, a new sports betting shop. Disney's sports division, one of its most valuable assets, creates a new exclusive brand.

ESPN to receive US$ 2B by creating sports betting firm with Penn

This new agreement will allow Penn Entertainment, according to both parties, to have the exclusive right to use the ESPN Bet trademark for a period of ten years, which can be extended for a further ten years if an agreement is reached between the parties.

According to Penn Entertainment, ESPN will pay us$1.5 billion in the first period of the agreement to ESPN. The remaining us$500 million will be paid as warrants for Disney to purchase approximately 31.8 million shares of Penn common stock, which can be increased to an additional 6.4 million if a number of targets are met.

The deal will be implemented "beginning this fall" in the 16 states in which Penn Entertainment is licensed to operate. The rebranding will be visible on the mobile app, website and mobile website.

According to early estimates, the project has "significant value creation potential", as it "provides an estimated potential for us$500 million to us$1 billion of annual adjusted EBITDA over the long term", Penn said.

Following the announcement, ESPN president Jimmy Pitaro said the main objective of the deal is "to serve sports fans and we know they want betting content and the ability to place bets with less friction from our products".

Penn Entertainment counterpart Jay Snowden said the partnership with ESPN allows them to "take another step forward as an industry leader" and will allow them to use their full potential to provide the best possible experience for their customers.

By Rodrigo Cardona

Categoría:Sportsbook

Tags: ESPN,

País: United States

Región: North America

Event

AffPapa Conference Madrid 2026

18 de May 2026

AffPapa Conference Madrid: Mexico’s iGaming Market Still Has “A Long Way to Go”

(Madrid, SoloAzar Exclusive).- At the second day of the AffPapa Conference Madrid 2026, industry executives gathered for the panel “Mexico: Reaching Market Maturity, or More to Go?” to analyze the current state of the Mexican gambling sector ahead of the upcoming FIFA World Cup. Moderated by Samantha Asensi, the discussion featured insights from Rosa Ochoa, Carlos Sánchez, Lucas Lebleu, Ruben Guillem, and Aviv Sher. The panel explored market growth, regulation, affiliate dynamics, player behavior, and the commercial opportunities surrounding the World Cup.

Friday 22 May 2026 / 12:00

AffPapa Conference 2026 Opens in Madrid with Expanded Agenda

(Madrid, SoloAzar Exclusive).- Madrid welcomes the biggest edition of AffPapa Conference yet, bringing together over 1,500 affiliates, operators, and B2B providers for three days of networking, sports, and iGaming insights. The official welcome takes place today, and SoloAzar is on site to deliver the latest updates.

Tuesday 19 May 2026 / 12:00