ESPN enters sports betting market in major partnership

ESPN is getting in on the sports betting scene.

The network announced a partnership with PENN Entertainment to open ESPN BET, a sports betting app that will go live in the 16 states PENN Entertainment is permitted to offer its services this Fall.

Per a press release from ESPN: 

"ESPN BET will become ESPN's exclusive sportsbook, and PENN Entertainment will receive odds attribution, promotional services inclusive of digital product integrations, traditional media and content integrations, and ESPN talent access, among other services that collectively generate maximum fan awareness of ESPN BET."

In the statement, ESPN chairman Jimmy Pitaro said, "Our primary focus is always to serve the sports fans and we know that they want both betting content and the ability to place bets with less friction from within our products."  

Business Wire reports the deal is for 10 years and that "PENN has agreed to make $1.5 billion in cash payments to ESPN paid over the initial 10-year term." PENN will also give ESPN money to buy shares of the betting company.

In partnering with ESPN, PENN divested from Barstool Sports, selling the entire company back to founder David Portnoy.

Legalized sports betting has created a murky area as it pertains to journalism. Earlier this year, FanDuel and Shams Charania received criticism after he reported Scoot Henderson was gaining momentum as the No. 2 overall pick of the 2023 NBA Draft.

That report pushed people to bet on him as the No. 2 pick on FanDuel, but after Charlotte selected Brandon Miller second overall, ESPN's Adrian Wojnarowski reported the team was always focused on Miller.