Disney Ends ESPN Bet Venture, Signs Multiyear DraftKings Deal

The Walt Disney Company, founded in 1923 by brothers Walt and Roy Disney, has evolved from a small animation studio into one of the world’s most influential entertainment and media conglomerates. Headquartered in Burbank, California, Disney’s mission is to entertain, inform, and inspire global audiences through unparalleled storytelling, innovative technology, and iconic brands. Over the decades, Disney has diversified its offerings, pioneering animated films, live-action productions, television networks, and theme parks. Its acquisitions of Pixar, Marvel, Lucasfilm, and 21st Century Fox have further cemented its status as a leader in global entertainment. Disney operates with a divisional organizational structure in 2025, organized into three major segments: Disney Entertainment (including Disney+, Hulu, and ABC), ESPN, and Parks, Experiences & Products. This structure enables operational efficiency and clear accountability while supporting innovation and brand synergy. The company is led by CEO Bob Iger, who returned to the helm in 2022 and has driven strategic initiatives in streaming, content integration, and global expansion. Disney’s global presence spans North America, Europe, Asia-Pacific, and Latin America, with tailored content and experiences for diverse markets. The company is recognized for its commitment to environmental sustainability, diversity and inclusion, and technological innovation. In fiscal 2025, Disney reported strong financial performance, with double-digit growth in entertainment and sports segments, and continued expansion in streaming and theme parks. Notable achievements include the launch of Disney+, integration of Hulu, and record-breaking park expansions. Disney’s blend of creative excellence, technological advancement, and global reach makes it a powerhouse in the entertainment industry, continually shaping the future of media and experiences worldwide.

**Penn Entertainment, Inc.** is a leading American company specializing in integrated entertainment, casino gaming, sports content, and online sports betting. Founded in 1972 by Peter Carlino as Penn National Race Course in Grantville, Pennsylvania, it started as a horse racing operator and has since evolved into a diversified entertainment powerhouse with a significant presence across the United States[1][2][6]. The company went public in 1994, enabling accelerated growth through acquisitions and expansion. Key milestones include acquiring Charles Town Races in 1997, Hollywood Casino Corporation in 2003, and Argosy Gaming Company in 2008, which broadened its casino portfolio and geographic reach[1][5]. In 2010, it rebranded as Penn National Gaming, reflecting its shift beyond horse racing into broader gaming and entertainment sectors. PENN further capitalized on emerging markets by entering sports betting in 2018 following the repeal of PASPA, the federal sports betting ban. A pivotal partnership with Barstool Sports in 2020 leveraged Barstool’s strong brand and audience to expand PENN’s online sports betting and iGaming platforms. Reflecting this strategic evolution, the company rebranded again in 2022 as PENN Entertainment to emphasize its broader entertainment and digital content focus[1][2][6]. Today, PENN operates 43 properties across 20 states under brands such as Hollywood Casino, Ameristar, Boomtown, and L’Auberge. Its business segments span regional casinos, racetracks, online sports betting, and iCasino operations through theScore BET and ESPN Bet brands, following a major $2 billion ESPN licensing deal in 2023. PENN also owns Score Media, a Canadian digital media firm, positioning itself uniquely at the intersection of gaming and sports content[2][6]. With over 23,000 employees and headquartered in Wyomissing, Pennsylvania, PENN continues to innovate by combining traditional gaming with cutting-edge onlin

**ESPN Bet** is an American sports betting brand operated by Penn Entertainment under a licensing agreement with ESPN Inc. It offers mobile and retail sportsbook services across multiple U.S. states, integrating betting opportunities directly into ESPN’s digital and television platforms to engage sports fans[1][4][7]. The brand originated in 2020 as **Barstool Sportsbook**, a partnership between Penn Entertainment and Barstool Sports. In August 2023, Penn sold Barstool back to its founder and simultaneously struck a landmark 10-year licensing deal with ESPN valued at $1.5 billion, plus an additional $500 million in stock options. This agreement marked Disney’s entry into the sports betting market after years of internal deliberation, aiming to leverage ESPN’s massive audience to drive engagement, especially among younger consumers. Barstool Sportsbook was rebranded as ESPN Bet in November 2023[1][2][4]. ESPN Bet's launch was designed to combine Penn’s sports betting infrastructure with ESPN’s content and reach, creating a seamless integration for fans to place bets within ESPN’s ecosystem. The sportsbook operated in 18 to 20 states through mobile apps and select retail casino locations owned by Penn. The partnership was notable for its scale and ambition, with ESPN betting $150 million annually for brand licensing and cross-promotion[1][4][7]. Despite the high-profile launch and strategic positioning, ESPN Bet struggled to gain significant market share, hovering around only 2.6–3% of the U.S. online sports betting market by mid-2024. This underperformance led Penn Entertainment and ESPN to mutually agree to end the partnership in late 2025. Penn announced it would rebrand ESPN Bet as theScore Bet, another sportsbook it had acquired, absorbing ESPN Bet’s operations and taking an $825 million write-down loss on the deal[5][6]. ESPN Bet’s rise and fall highlight the challenges traditional media brands face in the highly competitive and

## Overview of DraftKings Inc. DraftKings Inc. is a pioneering American company at the intersection of sports, technology, and entertainment, best known for its digital sports betting and daily fantasy sports (DFS) platforms. Headquartered in Boston, Massachusetts, DraftKings has grown from a startup launched in a Watertown apartment to a publicly traded powerhouse, reshaping how fans engage with sports through innovative digital experiences[1][2][3]. ## What DraftKings Does DraftKings operates a leading online sportsbook and DFS platform, allowing users to place bets on live sporting events and participate in daily or weekly fantasy contests. The company’s offerings have expanded to include casino games and other iGaming products, making it a vertically integrated provider in the U.S. sports entertainment market[2]. Its technology-driven approach leverages data analytics and user-friendly interfaces to deliver an immersive experience for sports fans. ## History and Evolution Founded in 2012 by Jason Robins, Matthew Kalish, and Paul Liberman—former VistaPrint executives with a passion for fantasy sports—DraftKings began by focusing on DFS, quickly gaining traction with savvy marketing and rapid user growth[1][3]. By 2014, it was the second-largest DFS provider, bolstered by acquisitions like DraftStreet and a $41 million Series C funding round[1][3]. The 2018 U.S. Supreme Court decision to repeal the Professional and Amateur Sports Protection Act (PASPA) opened the door for legal sports betting, and DraftKings swiftly expanded into this new market[1]. ## Key Achievements DraftKings’ milestones include going public in April 2020 via a $3.3 billion reverse merger with Diamond Eagle Acquisition Corp. and SBTech, trading under the ticker DKNG on the Nasdaq[1][2][3]. This made it the first vertically integrated pure-play sports betting and online gaming company based in the U.S