DraftKings Picks Up a New Partner in the Competitive Sports-Betting Business

Core Insights - ESPN has terminated its partnership with PENN Entertainment and has signed a new deal with DraftKings, making it the exclusive Official Sportsbook and Odds Provider of ESPN [1][7] - This shift highlights the competitive landscape of the U.S. sports betting market, particularly in light of recent scandals involving the NBA [3][5] Company Developments - The previous deal with PENN was valued at $1.5 billion over 10 years, with termination rights based on market share performance [4] - DraftKings' shares increased by nearly 1% following the announcement, while PENN's shares fell by over 6% [2][7] Market Context - The transition from PENN to DraftKings reflects the intense competition in the sports betting sector, especially as ESPN's betting platform struggled to compete with established players like DraftKings and FanDuel [3][4] - The change comes amid increased scrutiny of sports gambling practices, particularly following recent arrests related to NBA betting scandals [5][8]