Prepare yourself for the arrival of ESPN Bet, a revamped sports-betting app owned by Penn Entertainment. In a groundbreaking deal worth $1.5 billion, plus other considerations, Penn Entertainment has secured exclusive rights to use the ESPN name.
This collaboration between ESPN and Penn Entertainment signals new territory for Walt Disney Co., the parent company of ESPN. Known for its family-friendly image, Disney has not typically ventured into the realm of sports gambling.
Penn will take charge of operating ESPN Bet, while ESPN will actively promote the app across its online and broadcast platforms to ensure maximum fan awareness. Interestingly, ESPN Bet will also enjoy some level of access to ESPN talent, as stated in the agreement between the two companies.
The licensing agreement for the ESPN brand will initially last for ten years, with the possibility of extension by mutual agreement, giving Penn long-term rights. In addition to the $1.5 billion paid over a decade, Penn will grant ESPN approximately $500 million in rights to purchase shares in the company.
“Penn Entertainment is an ideal partner for creating an unparalleled user experience for sports betting with ESPN Bet,” remarked Jimmy Pitaro, chairman of ESPN. The collaboration poses an interesting challenge for Disney, which has grappled with adult-oriented entertainment in the past. Pleasure Island, a late-night area at Walt Disney World, was closed down and redeveloped into The Landing at Disney Springs, as Disney sought to align its offerings with its family-friendly values.
In its commitment to responsible gaming, ESPN plans to utilize its platforms to educate sports fans. This includes reporting on the sports betting industry with journalistic integrity, establishing a responsible gaming committee, and developing marketing guidelines that prioritize the well-being of fans.
Penn Entertainment also made another significant announcement, revealing the sale of Barstool Sports, a daring sports media site, back to its founder Dave Portnoy. Penn initially acquired a 36% stake in Barstool Sports in February 2020 for approximately $163 million. Subsequently, in February 2023, Penn acquired the remaining company shares for around $388 million. The terms of the divestment deal were not disclosed by either party.
In an enthusiastic video posted on X, formerly known as Twitter, Dave Portnoy expressed his excitement about Barstool Sports regaining its independence. Portnoy stated that the regulated gambling industry was not the most suitable environment for the kind of content they produce at Barstool Sports. He made it clear that he has no intention of selling the company. As part of the divestment agreement, Penn Entertainment would be entitled to 50% of the gross proceeds from any future sale or monetization of Barstool.
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Basant Kasayap is an entertainment aficionado who delves into the glitz and glamour of the entertainment industry. From Hollywood to Bollywood to regional cinema, she offers readers an insider’s perspective on the world of movies, music, and pop culture.
