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Walt Disney’s ESPN and casino-owner Penn Entertainment have announced a strategic partnership to introduce a sports betting venture, slated to operate under the banner of ‘ESPN Bet.’
The joint venture aims to capitalize on the growing popularity of sports betting and leverage the powerful ESPN brand to create a dynamic and engaging platform for enthusiasts.
Under the terms, Penn will pay ESPN $1.5 billion in cash and offer about $500 million worth of warrants to purchase its shares over an initial 10-year term in exchange for the brand, promotional services and other rights, Reuters reported.
“We know they (audience) want both betting content and the ability to place bets with less friction from within our products,” ESPN Chairman Jimmy Pitaro said.
Penn will rebrand its sportsbook service and relaunch it as ESPN Bet in the fall across the 16 legalized betting states where it has licenses.
ESPN will have the option to designate a non-voting board observer or, upon completion of three years of the agreement, a board member, they added.
