Disney Switches Official Sports Betting Partner from Penn to DraftKings
Walt Disney Co. announced on Tuesday that it has signed a new multiyear agreement naming DraftKings Inc. as the official sports‑betting and odds provider for its ESPN networks, ending the previous partnership with casino operator Penn Entertainment. The deal, reported by Bloomberg, will see DraftKings branding and data integrated across ESPN’s television, digital and social platforms beginning in early 2025.
The shift comes as the sports‑betting industry continues to consolidate after the 2018 Supreme Court decision that lifted the federal ban on state‑level wagering. Disney, which launched its own ESPN Bet venture with Penn in 2022, had been testing the market with a limited rollout in a handful of states. Under the new arrangement, DraftKings will supply real‑time odds, betting lines and related content, while ESPN will promote the platform through on‑air graphics and online features.
Industry analysts note that the partnership reflects a broader trend of media companies aligning with established betting firms that possess robust technology infrastructure and a wider geographic footprint. "For ESPN, the priority is to deliver a seamless betting experience to its audience while mitigating operational risk," said a senior analyst at a research firm that tracks sports‑media deals. The agreement also aligns with DraftKings’ strategy to deepen its presence in high‑visibility media properties, complementing its existing partnerships with other broadcasters.
Regulatory officials indicated that the deal complies with existing state licensing requirements, and no new legislation is expected to be necessary. Local authorities in several key markets, including New York and Illinois, have previously approved similar collaborations, emphasizing consumer protection and responsible‑gambling safeguards.
While the partnership will likely boost DraftKings’ user acquisition and advertising revenue, it also raises questions about the long‑term profitability of ESPN’s betting venture. Disney has not disclosed financial terms, but sources suggest the agreement includes revenue‑share components tied to wagering volume. Observers will watch closely how the integration affects viewership metrics for ESPN’s flagship sports broadcasts, as betting content becomes an increasingly prominent feature of sports programming.
Overall, the transition marks a significant step in the evolving relationship between sports media and the gambling industry, positioning both Disney and DraftKings to capitalize on the growing appetite for legalized sports betting across the United States.
