Wyomissing-based PENN Entertainment, a provider of integrated entertainment, sports content, and casino gaming experiences, recently entered into an exclusive, 10-year U.S. online sports betting agreement with ESPN, a multimedia sports entertainment company, and ESPN Enterprises.
The agreement could be extended for an additional 10 years upon mutual agreement
PENN Entertainment operates 43 properties in 20 states, online sports betting in 17 jurisdictions and iCasino in five jurisdictions, under a portfolio of brands including Barstool Sportsbook.
The agreement allows PENN to position itself to significantly expand its digital presence and is part of a strategy focused on organic cross-sell opportunities.
Under the terms of the agreement, Barstool Sportsbook will be rebranded during the third quarter of this year across all online platforms in the United States as ESPN Bet. ESPN Bet will take advantages of promotional services across ESPN platforms including programming, content, and talent.
The new app also will include a separate Hollywood-branded integrated iCasino in states where it is permitted.
Additionally, PENN will pay ESPN $1.5 billion over the agreement term and will grant ESPN approximately $500 million in warrants to purchase approximately 31.8 million PENN common shares.
Upon meeting certain performance thresholds, ESPN could receive bonus warrants.