ESPN Bet ending: Sportsbook rebranding after ESPN and Penn break up

Driving the news: Penn — which owns about two dozen casinos — will rebrand ESPN Bet as theScore Bet in the U.S.

• ESPN announced a new partnership with DraftKings to highlight the sportsbook's odds and promote DraftKings services "with a full rollout expected in 2026."
• The Disney-owned sports network said ESPN Bet "will shift to a sports betting content brand with DraftKings Sportsbook integrations," such as a weekly show called ESPN Bet Live that will continue.

The big picture: When Penn rebranded its sportsbook from Barstool to ESPN Bet in 2023, the goal was to nab 10% to 20% U.S. market share within three years, according to gambling industry consultant Dustin Gouker's The Closing Line.

• But today the app has only about 3% market share, making it the sixth most popular sportsbook in the U.S.

• When they signed their initial 10-year deal, the two sides had agreed that either side could withdraw after three years if certain market share goals hadn't been achieved.

The bottom line: Penn will stop its annual payments of $150 million to ESPN for licensing and marketing purposes this quarter.

• "We plan to realign our digital focus on our growing iCasino business, while continuing to capitalize on our omnichannel advantage as the nation's leading regional retail casino operator," Penn CEO Jay Snowden said in a statement.