ESPN Bet Could Shut Down In 2026

The days of ESPN Bet appear to be numbered.

In 2022, ESPN Bet signed a $2 billion deal with sports betting giant Penn National. The hope was that by 2027, the ESPN betting format would have about a 20 percent share of the gambling market. 

However, just two years into the agreement between the two sides, ESPN Bet only has a paltry 2.35 percent share of the sports betting landscape. That has Penn strongly considering leaving the agreement after just three years. 

"When we announced our partnership, both sides made it very clear that we expected to compete for a seat at the podium. And we’re not on pace right now to do that," Penn National CEO Jay Snowden said in an earnings report. "We have tremendous plans in place for 2025 and 2026."

The ESPN Bet logo on a smartphone arranged in New York, US, on Thursday, Feb. 22, 2024. Penn Entertainment Inc.'s interactive gambling unit lost $333.8 million in the fourth quarter because of costs associated with the Nov. 14 launch of its new ESPN Bet sports-wagering product, sending the shares lower. Photographer: Gabby Jones/Bloomberg via Getty Images

"But if, for whatever reason, we’re not hitting the levels that we need to, then obviously, as you’re approaching the third anniversary, you have a three-year clause in that contract that both sides will have to do what’s in their best interests," he continued. "And so, that’s always out there."

If the deal is dissolved, ESPN will be able to join up with another betting site such as Fanduel or Draft Kings.  

The original deal was to use ESPN’s platform to grow the business. It was a 10-year, $2 billion deal. 

One source of frustration comes from ESPN’s apparent lack of urgency to push the sportsbook through its sports news app, which is by far the most used sports app in the country. Furthermore, the on-air talent seems limited in what it can say about ESPN Bet. 

Should it choose to do so, Penn can back out of the deal after 2026, which is when the three-year clause kicks in.