Penn and sports broadcaster ESPN have announced a $1.5 billion deal. As part of the agreement, Penn will relaunch its existing Barstool Sportsbook as ESPN Bet. Additionally, Penn will divest its Barstool Sports sportsbook brand and sell it back to Dave Portnoy, the founder of Barstool. The launch of ESPN Bet is set for November, which Penn defends as a strategic timing mid-season, allowing the brand to stand out amidst the football season. Snowden, the CEO of Penn, believes that ESPN’s well-established reputation will complement Barstool’s younger profile and create new opportunities for integration. Penn also expects to benefit from ESPN’s extensive reach, aiming for a 20% market share in the US.
The partnership with Barstool has already proven successful in growing Penn’s digital database, adding 1.5 million new users. Snowden is confident that the collaboration with ESPN will further accelerate this growth. Looking ahead, Penn plans to make additional strategic investments in its Interactive division, building on its advanced technology.
