ESPN revealed on Tuesday that it has entered a licensing agreement with Penn Entertainment to build a branded sportsbook for US consumers, which will launch later this year.
Penn will rebrand its existing sportsbook in the 16 states where it is licensed to ESPN Bet, affecting its website, mobile app, and retail stores.
Betting will be available through ESPN digital products.
“Our primary focus is always to serve sports fans and we know they want both betting content and the ability to place bets with less friction from within our products,” ESPN chairman Jimmy Pitaro said.
“The strategy here is simple: to give fans what they’ve been requesting and expecting from ESPN.”
According to a news statement, Penn has agreed to pay ESPN $1.5 billion over ten years and provide the Disney-owned broadcaster $500 million in warrants to buy about 31.8 million shares of Penn stock, with additional options based on ESPN Bet’s performance.
ESPN Bet will be the network’s exclusive sportsbook and will be integrated into programming and content later this year.
ESPN’s latest step in sports gaming follows the network’s existing daily bet-focused broadcasts on several platforms and odds shown on programs and websites.
Penn is licensed to operate an online sportsbook in Arizona, Colorado, Iowa, Illinois, Indiana, Kansas, Louisiana, Massachusetts, Maryland, Michigan, New Jersey, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia.
According to the American Gaming Association, $93.2 billion was wagered at sportsbooks last year, a 63% increase over 2021, with legal sportsbook revenue expected to reach $7.5 billion in 2022.
