In addition to getting the ESPN name, Penn will see the product integrated into ESPN’s linear and digital coverage. The service will launch in the 17 states where Penn Entertainment holds licenses this week. Penn also agreed to give ESPN roughly $500 million in equity warrants.
Barstool IP and talent helped the gaming company grab only 3% of sports betting market share nationwide. The product represents Penn’s 10-year, $1.5 billion wager in the cultural sway of the U.S.’s biggest sports media brand after Penn’s partnership with Barstool Sports and subsequent creation of Barstool Sportsbook failed to break through. The future starts now for ESPN and Penn Entertainment, with the launch of ESPN Bet Tuesday.
