ESPN has announced that it has partnered with gambling company PENN Entertainment in a $2 billion, 10-year deal to fully break into the sports betting market. PENN will rebrand its Barstool Sportsbook, selling Barstool Sports back to Dave Portnoy in the process, as ESPN Bet. ESPN will receive a base payment of $1.5 billion over the next decade, as well as an additional $500 million for the use of ESPN's licenses and services.
The move comes at a turbulent time for the Disney-owned broadcaster. In June, ESPN announced a round of layoffs that primarily affected high-earning on-air talent. Meanwhile, the company also announced the acquisition of Pat McAfee and his brand after McAfee negotiated a buyout with FanDuel. Furthermore, ESPN is reportedly in the running to acquire Shannon Sharpe after his exit from Undisputed and FS1. Now, it appears that they have set their sights on being a major player in the ever-growing sports betting market.
Read More: Stephen A. Smith responds to ESPN layoffs
Reception Cool On PENN Partnership
However, the news has met with overwhelming skepticism and concern. Many have questioned why ESPN has chosen now of all times to push hard into sports betting. Furthermore, many have expressed skepticism that ESPN, with even the backing of a major player like PENN, will be able to hang with the likes of FanDuel and Draft Kings. "I don’t know a single sports fan requesting ESPN Bet. If Barstool (or Fox) couldn’t convert users to sportsbook, why would ESPN? Not to mention the late start and an undifferentiated product. Tough road for Penn IMO," one X user wrote while highlight part of the announcement that said the move was something fans had been looking for from ESPN.
Furthermore, there are a number of major concerns about how this move will affect ESPN's status as a news outlet. Many pointed to the controversy surrounding the NBA Draft as proof of these concerns. Well-regarded NBA journalist Shams Charania, who has a partnership with FanDuel, reported that sources were saying the Hornets were planning to take Scoot Henderson over Brandon Miller. This benefitted FanDuel, who saw a wave of bets on Henderson going second overall. The Hornets took Miller, as most other pundits expected. In short, a major news outlet/broadcaster also being a major sportsbook leads to a massive conflict of interest.
Reactions To ESPN Bet News
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