The sports betting landscape has been revolutionized with the launch of ESPN Bet, a new online sportsbook that has taken the industry by storm. This highly anticipated launch took place on November 14, 2023, and has been met with great enthusiasm by players in 17 states.
At launch, ESPN Bet was made available in Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, New Jersey, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia.
The launch was strategically timed to coincide with the busy sports calendar during Thanksgiving, capitalizing on the heightened interest in sports during this period such as the NCAA college football rivalry week and the Super Bowl rematch of the Kansas City Chiefs and the Philadelphia Eagles, televised on ESPN’s Monday Night Football.
ESPN will implement an initial wave of integrations. These will target an estimated audience of 200 million across its multiple digital channels. There will also be an advertising campaign from SportsCenter anchors Scott Van Pelt and Elle Duncan.
In a note on the HollywoodCasino website, parent company Penn Entertainment informed players that the operations of the platform will cease on 14 December, as the Pennsylvania-based operator plans to integrate its casino platform with ESPN Bet in the coming weeks in the markets of New Jersey, Pennsylvania, West Virginia, Connecticut, Michigan and Delaware where it is legal to do so.
Penn Entertainment acquired the Hollywood Casino Corporation in 2003 for $328 million and $360 million in assumed debt. At the time, Penn was known as Penn National Gaming and Hollywood Casino Corporation was a Texas-based gaming operator that owned and managed three riverboats: Hollywood Casino Aurora in Illinois, Hollywood Casino Shreveport in Louisiana, and Hollywood Casino Tunica in Mississippi.
The launch of ESPN Bet is the culmination of a series of strategic moves by ESPN and Penn Entertainment. ESPN has been gradually integrating odds into their programming over the past few years, signaling their interest in the sports betting industry.
Barstool Sports, a popular sports and pop culture blog, was initially acquired by Penn Entertainment in 2020. Penn bought a 36% stake in Barstool for approximately $163 million, signaling its entry into the sports betting industry. However, the partnership faced several challenges. The edgy and often controversial content of Barstool Sports, while popular with its fanbase, posed regulatory issues in the tightly controlled sports betting market.
In a surprising turn of events, Penn sold Barstool back to its original owner, Dave Portnoy, for a nominal fee of $1 in 2023. This move was part of a strategic shift by Penn to partner with ESPN and launch ESPN Bet, a new online sportsbook. As part of the deal, Barstool agreed to a non-compete clause, and Penn retained the rights to 50% of gross proceeds in any subsequent sale of Barstool Sports.
Owned by Disney, ESPN is the largest sports media brand in the US, with over 100 million unique monthly digital visitors, a social media presence that tops 370 million followers, and more than 40 million followers on TikTok worldwide.
ESPN signed a $1.5 billion licensing partnership with Penn, marking the beginning of a new era in sports betting. This alliance led to the creation of ESPN Bet, a newly-branded online sportsbook set to redefine the sports betting experience.
The launch of ESPN Bet is significant for several reasons. Firstly, it marks the entry of ESPN, a media giant, into the sports betting space. Secondly, the partnership with Penn brings together the media reach of ESPN with the sports betting expertise of Penn, creating a platform that offers an unparalleled sports betting experience. Lastly, the rebranding of Barstool Sportsbook to ESPN Bet allows the platform to bypass the regulatory issues that plagued Barstool, enabling it to launch in markets where Barstool faced challenges.
In conclusion, the story of Barstool, Penn, and ESPN is a testament to the dynamic nature of the sports betting industry. It highlights the importance of strategic partnerships, the need for regulatory compliance, and the immense potential of the sports betting market. It’s a story of transformation and adaptation, and it sets the stage for the future of sports betting with the launch of ESPN Bet.
Disney’s involvement in the launch of ESPN Bet indeed marks a significant shift in the company’s stance towards sports betting. Disney, which has owned ESPN since 1995, has traditionally maintained a family-friendly image and has been cautious about associating with the gambling industry. In fact, Disney has been a vocal opponent of the launch of legal sports betting in Florida, and even spent over $20 million in 2018 lobbying to make it harder to build casinos in Florida.
However, the growing acceptance of online sports gambling and the potential revenue from this fast-growing industry seem to have changed Disney’s stance. The launch of ESPN Bet is seen as a strategic move by Disney to tap into the lucrative sports betting market while maintaining its core values. Disney is leaving the bookmaking to third parties: Penn, not ESPN, will be handling the bets.
This move has not been without controversy. The ethics concerns surrounding Disney’s apparent desire to align with the sports betting industry have raised some eyebrows. Critics have pointed out the potential conflict between Disney’s family-friendly image and the promotion of sports betting. However, Disney seems to be banking on the growing public acceptance of sports betting and the potential revenue it can generate.
Penn Entertainment, the company behind ESPN Bet, expects an additional $500 million to $1 billion in annual earning potential in its interactive segment. They are projecting a 20% market share by 2027. If ESPN Bet becomes the largest bookmaker in the USA, which it could easily become because of an unparalleled TV access, the revenue could be significantly higher.
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Daniel Horvat 
November 19, 2023 
