You know ESPN the sports media giant. Now brace yourself for ESPN Bet, a rebranding of an existing sports-betting app owned by Penn Entertainment, which is paying $1.5 billion plus other considerations for exclusive rights to the ESPN name.
The deal, announced Tuesday, could take Walt Disney Co.-owned ESPN into uncharted waters. Disney is fiercely protective of its family-friendly image, not typically associated with the world of sports gambling.
Penn will operate ESPN Bet, which ESPN has agreed to promote across its online and broadcast platforms in order to generate “maximum fan awareness” of the app. ESPN Bet will also have unspecified “access” to ESPN talent, the companies said.
Penn's rights to the ESPN brand will initially run for a decade and can be extended for another decade by mutual agreement. In addition to the $1.5 billion licensing deal, which will be paid out over a decade, Penn will also grant ESPN rights worth about $500 million to purchase shares in Penn.
“Penn Entertainment is the perfect partner to build an unmatched user experience for sports betting with ESPN Bet,” ESPN chairman Jimmy Pitaro said in a statement.
Disney has wrestled with the issue of adult-oriented entertainment in the past. Until about 15 years ago, its Walt Disney World park in Orlando, Florida, featured a gated late-night area known as Pleasure Island — actually a reference to the 1940 film “Pinocchio,” whose characters visited a den of iniquity by that name. Pleasure Island featured bars, music venues and nightclubs in addition to restaurants, shopping and a nightly countdown to “New Year's Eve” complete with fireworks.
When attendance waned, Disney closed down the Pleasure Island nightclubs in 2008 and redeveloped the site as a restaurant and shopping district now known as The Landing at Disney Springs.
ESPN added that it will use its platforms “to educate sports fans on responsible gaming” — for instance by continuing to cover the sports betting industry with “journalistic integrity,” creating a “responsible gaming” committee within the company and developing marketing guidelines that “safeguard” fans.
Penn also announced that it sold Barstool Sports, an irreverent sports media site, back to its founder Dave Portnoy. Penn took a 36% stake of Barstool Sports in February 2020 for about $163 million and subsequently acquired the remainder of the company for about $388 million in February 2023. Neither Penn nor Portnoy disclosed terms of the divestment deal.
In a video posted on X, the site formerly known as Twitter, Portnoy radiated excitement over the site's regained independence. The regulated gambling industry, he said, “was probably not the best place for Barstool Sports and the kind of content we make.” Portnoy added that he will “never” sell the company. As part of the divestment deal, Penn would be owed 50% of the gross proceeds from any future sale or “monetization” of Barstool.
Sportradar, a global sports data company, announced it will serve as UEFA’s exclusive authorized collector and distributor of data for betting purposes. The agreement covers 1,550 matches from the 2021-2022 season through to the end of the 2023-2024 season across all UEFA properties in Europe. Sportradar CEO Carsten Koerl joined Cheddar to provide additional details on the landmark partnership and some insight into the future of sports betting.
Carlo's flying solo today, talking COP26 and climate change, another racially charged trial gets underway, SCOTUS takes on abortion and a stunning rise in traffic deaths points to a bigger societal breakdown sparked by the pandemic.
Florida Panthers head coach Joel Quenneville has resigned from his position after former player Kyle Beach's claims of sexual assault by Chicago Blackhawks team videographer, Brad Aldrich, went unchecked in 2010. Quenneville, then head coach of Chicago, initially told reporters he became aware of the incident this past summer but was reportedly made aware shortly after it happened.
Carlo and Baker cover Facebook's big rebrand, the latest on Biden's economic agenda and more. Plus, ranking the best Halloween candy and the worst couple's costumes.
Michael Jenkins, host of 'The Daily Tip,' gives his pick for Thursday night's Packers-Cardinals duel, while VSiN sports betting reporter Josh Appelbaum breaks down the other top NFL games this weekend, and Bookies.com sports betting expert Dan Kilbridge says to back the Spartans in a pivotal Big Ten battle on Saturday.
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New controversy emerges in the MLB surrounding comments from commissioner Rob Manfred. While speaking to reporters before game one of the World Series, Manfred shrugged off questions about the Houston Astros' sign-stealing scandal, and also offered support for the Atlanta Braves to keep its name, which the National Congress of American Indians has already condemned. Forbes SportsMoney senior contributor Maurey Brown joins Cheddar News' Closing Bell to discuss this and other storylines in the MLB.
Josh Appelbaum, VSiN Sports Betting Reporter, joins 'Cheddar Bets' to break down lessons learned from lopsided games from a betting perspective, if the Saints can keep it close against the Buccanneers, and the Cowboys red-hot offense.
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Dan Kilbridge, Bookies.com Sports Betting Expert, joins 'Cheddar Bets' to break down this week's matchup between undefeated Michigan and Michigan State teams. Plus, is Georgia in danger this week?
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Michael Jenkins, Host of 'The Daily Tip', joins 'Cheddar Bets' to break down the Thursday Night Football matchup and which player props to hit with Davante Adams out; Michael and Hana play a round of Buzzer Beater.
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Boxing Legend Mike Tyson, Chief Brand Officer, of Tyson 2.0 and Chad Bronstein, Chairman of Tyson 2.0, joined Cheddar News to discuss venturing into the cannabis industry.
