Penn Entertainment is making a significant move by ending its partnership with ESPN Bet earlier than planned, a decision driven by the company’s failure to meet its market share ambitions. This marks another costly chapter for Penn in its attempt to forge a major media collaboration in the sports betting industry. The partnership, which was highly publicized, is now coming to an abrupt close less than three years after its inception, following a costly investment of $150 million annually and a disappointing 3% share of the US market.

According to Penn’s third quarter report released on Thursday, both companies agreed to terminate their agreement amicably. Originally set for a decade, the deal was supposed to run through 2033, with Penn paying ESPN for media rights, marketing, and exclusive access to ESPN Bet. The deal included an option for either side to exit after three years if certain market share targets were not achieved. The initial goal was to capture between 10% and 20% of the market within that timeframe, but those targets proved elusive.

Penn’s President and CEO, Jay Snowden, reflected on the situation, stating, “When we first announced our partnership with ESPN, both sides made it clear that we expected to compete for a podium position in the space. Although we made significant progress in improving our product offering and building a cohesive ecosystem with ESPN, we have mutually and amicably agreed to wind down our collaboration.” He further explained that Penn plans to shift its focus toward its growing iCasino business, emphasizing their strength as a leading regional retail casino operator and their omnichannel strategy.

In light of this change, Penn is preparing to relaunch its theScore Bet product in the United States. The new version is targeted for launch by December 1, aligning with the start of sports betting in Missouri. Snowden mentioned that the app will automatically update from ESPN Bet to theScore Bet, and that the media app has a substantial user base of four million monthly users across North America. Penn acquired theScore in 2021 for $2 billion, but the sportsbook temporarily halted US operations in 2022 to concentrate on Canada’s market.

Penn’s previous foray into media partnerships, including its costly acquisition of Barstool Sports, ended similarly in disappointment. After investing heavily, the company sold Barstool back to founder Dave Portnoy for just $1 in 2023, following underwhelming results in converting its audience into a meaningful sports betting market share. Now, Penn is preparing to shift its focus from media collaborations to enhancing its core iCasino offerings and regional retail operations.

Financially, Penn will pay $38.1 million in the fourth quarter to Disney-owned ESPN, along with an additional $5 million to promote theScore Bet and Hollywood Casino. The company must cease using the ESPN brand by December 15, and Disney cannot license the ESPN Bet brand for at least 15 months following that date. ESPN’s chairman, Jimmy Pitaro, acknowledged the collaboration’s initial success, noting that “ESPN drove over 2.9 million new users into the Penn ecosystem,” and expressed appreciation for the partnership’s efforts.

Despite the end of this chapter, Penn retains the 2.9 million users gained through ESPN, and ESPN still holds warrants to purchase nearly eight million shares at a strike price of $28.95. Both companies will continue to collaborate on marketing and media initiatives, with ESPN announcing a new partnership with DraftKings to serve as its official sportsbook and odds provider starting December 1.

Snowden emphasized that Penn will continue to leverage theScore as a funnel to its Hollywood Casino iCasino app, aiming to cross-sell to its 33 million Penn Play members. “Our OSB offerings will continue to provide top of funnel acquisition and cross-sell opportunities,” he said, highlighting plans to operate more efficiently by shifting from fixed media spending to targeted, performance-based marketing that complements their casino footprint. This realignment aims to improve profitability and expand their presence across North American markets.

In the third quarter, Penn’s land-based operations remained stable, generating $1.4 billion in revenue, but online revenues fell short at $297.7 million, with an adjusted EBITDA loss of $76.6 million. Snowden attributed this to a “customer-friendly hold” and lower online sports betting volumes than expected. Nonetheless, he pointed out the positive momentum in the iCasino segment, which saw a 40% year-over-year increase in quarterly revenue and continued growth in active monthly users.

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This is not Penn’s first failed media partnership. The company previously invested heavily in Barstool Sports, acquiring full ownership in 2022 for a total of $551 million, only to sell it back to founder Dave Portnoy for just $1 in 2023 after underwhelming performance in the sports betting space.

Meanwhile, shortly after Penn’s exit from ESPN Bet, ESPN announced a new partnership with DraftKings, making DraftKings its official sportsbook and odds provider starting December 1. ESPN’s chairman, Jimmy Pitaro, highlighted the strategic value, saying, “Working with DraftKings, a leader in the space, will allow us to build upon that foundation, continue to super-serve passionate sports fans, and grow our ESPN direct-to-consumer business.” DraftKings will integrate its products across ESPN’s ecosystem, including sportsbook, daily fantasy, and the DraftKings Pick6 app, further cementing its presence in sports media.

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A Senate Judiciary Committee hearing in December 2024 briefly shifted focus, with discussions on the matter stalling afterward. Committee Chair Senator Dick Durbin (D-Ill) indicated that the conversation was not over, but the issue remains largely dormant for now. Meanwhile, some legislators are actively revisiting previously introduced bills, while others are engaging with the topic anew, reflecting a renewed urgency to address the integrity of sports betting.

In the wake of the NBA gambling scandal, the House Committee on Energy and Commerce has requested a briefing from NBA Commissioner Adam Silver. The committee seeks comprehensive details about the incident, the league’s response, and whether its current code of conduct is sufficient. Additionally, they are interested in whether the NBA is reconsidering its partnerships with sports betting companies. The committee’s letter underscores the broader concern: “These allegations raise serious concerns about sports betting and the integrity of the sport in the NBA, which harms fans and legal sports bettors.” The committee’s jurisdiction over interstate commerce, consumer protection, and sports underscores its interest in safeguarding the integrity of the game.

Simultaneously, Senators Ted Cruz (R-Texas) and Maria Cantwell (D-Wash) have demanded the NBA produce documents related to any internal investigations into illegal gambling activities involving players and coaches since 2020, with a deadline set for November 10. Their letter emphasizes the importance of maintaining trust in the NBA: “The integrity of NBA games must be trustworthy and free from the influence of organised crime or gambling-related activity. Sports betting scandals like this one may lead the American public to assume that all sports are corrupt.”

Senator Durbin has also expressed support for a nationwide ban on prop bets, citing the need to uphold sports integrity. He highlighted the increasing frequency of scandals, stating, “The temptation for athletes, seasoned coaches and professional officials to adjust performances is real. Sadly, scandals are becoming more and more frequent. Congress, states and sports leagues must all work to maintain the integrity of sports and prevent future sports betting scandals.” Industry watchdogs, including league compliance teams, regulated sportsbooks, and integrity monitors, have flagged suspicious wagers that contributed to ongoing investigations.

Meanwhile, NCAA President Charlie Baker is spearheading efforts to prohibit college player prop bets across the United States. Several states, such as Ohio, Louisiana, and Maryland, have already enacted or retroactively imposed bans on collegiate prop betting. However, extending such restrictions to professional sports presents additional challenges. U.S. Rep. Michael Baumgartner, who introduced a bill earlier this year to ban collegiate prop bets nationwide, acknowledged that a similar ban on professional props might be unlikely to pass Congress.

Opponents of such bans warn that banning prop bets could inadvertently push demand into offshore markets, complicating regulatory efforts. To combat this, Senators Richard Blumenthal (D-Conn) and Katie Britt (R-Ala), along with ten other bipartisan lawmakers, sent a letter to Attorney General Pam Bondi urging the Department of Justice to intensify efforts against illegal offshore gambling operations. The letter highlights concerns about the impact on youth, noting that all 50 state attorneys general have previously called on the DOJ to take action against offshore betting websites under the Unlawful Internet Gambling Enforcement Act.

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The push for regulation comes amid a broader crackdown, with regulators across the country issuing hundreds of cease-and-desist orders to illegal gambling operators. In 2023, multiple state agencies appealed to the DOJ for additional support in dismantling illegal online gambling markets. During recent Senate Judiciary hearings, Attorney General Bondi was questioned about the DOJ’s strategy concerning offshore gambling, with Senator Britt emphasizing the importance of protecting minors from these illicit sites. Her office indicated ongoing efforts to address this issue, recognizing offshore sites as a significant factor in the rise of illegal sports betting among minors.

The bipartisan group of lawmakers, including Blumenthal and Rep. Paul Tonko (D-NY), continues to champion the Supporting Affordability and Fairness with Every Bet Act (SAFE Bet Act). Reintroduced in March and currently dormant, the legislation aims to establish national advertising standards, enforce affordability checks, ban collegiate prop bets, and restrict the use of AI targeting technology in betting. The recent NBA scandal has reinvigorated support for the bill, with advocates arguing that unchecked growth in legal sports betting undermines public trust and facilitates corruption.

Blumenthal emphasized that the SAFE Bet Act would help prevent coaches and athletes from betting on their own games and ensure robust oversight of gambling companies. “These troubling indictments are the most recent signal that the sports betting industry has corrupted the game to the detriment of fans and victims of gambling addiction,” he stated. “Letting gambling companies turn sports into the wild west has been an abysmal and absolute failure – it’s time for Congress to enact the SAFE Bet Act into law.”

As the debate over sports betting continues, it is clear that lawmakers remain committed to balancing regulation with the preservation of the sport’s integrity, especially in light of recent scandals exposing vulnerabilities in the current system.

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The total sports betting handle for the month was reported at $338.9 million, reflecting a 21% rise from the previous year. Month-over-month, the handle increased by 19.9%, which is likely tied to renewed consumer interest amid the return of college and professional football seasons.

For August 2025, gross receipts from iGaming reached $263.3 million, showing a growth of 37.5%. Sports betting contributed $49.2 million, an impressive 67.5% increase year-over-year. When combining these figures, the adjusted gross receipts (AGR) for both sectors totaled $281.4 million. Of this, iGaming was the primary driver, generating $247.2 million, which represented a 39.8% increase, while sports betting accounted for $34.2 million, an increase of $17.9 million over August 2024.

Tribal operators reporting to the MGCB paid $6.2 million in contributions to relevant authorities, marking a 34.8% rise. Additionally, Detroit’s three commercial casinos contributed $13.8 million in wagering taxes and service fees for the month. The continued growth in the industry underscores Michigan’s expanding gaming market.

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In related developments, Caesars Entertainment announced the launch of its third branded live dealer studio in Michigan on July 14, 2025. This expansion follows similar facilities introduced earlier in New Jersey and Pennsylvania, signifying Caesars’ increasing footprint across the US.

However, the MGCB also took regulatory action on August 14, issuing cease-and-desist orders to 15 unlicensed online gambling operators found to be violating the state’s laws, including the Lawful Internet Gaming Act, Gaming Control and Revenue Act, and sections of the Michigan Penal Code. The targeted operators, which included 7 Bit Casino, Avia Games Inc., Grande Vegas Casino, High Country Casino, PrimaPlay Casino, Slot Madness, Slots Plus Casino, Sun Palace Casino, and Vegas Casino Online, were identified as actively targeting residents within Michigan without proper licensing. Michigan betting revenue

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