Penn Entertainment Inc. (NASDAQ:PENN) is poised to launch ESPN Bet, a rebranded sports gambling app, following a significant partnership with ESPN. The launch is scheduled for Tuesday afternoon, although an exact time has not been specified.
In August, Penn Entertainment (NASDAQ:PENN) inked a $1.5 billion deal with ESPN, securing rights to use the sports media titan’s brand. Under this arrangement, Penn will manage ESPN Bet, while ESPN will promote the app across its digital and broadcast channels.
The availability of ESPN Bet is initially planned for 17 states, including Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, New Jersey, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia.
This agreement grants Penn Entertainment rights to the ESPN brand for an initial period of ten years, with an option to extend for another decade. Additionally, as part of the deal, Penn has agreed to provide ESPN with rights valued at approximately $500 million to acquire shares in the company.
ESPN Bet represents a rebranding of Penn’s existing sports betting app, the online Barstool Sportsbook. In a separate development in August, Penn announced the sale of Barstool Sports back to its founder, Dave Portnoy.
The introduction of ESPN Bet marks a new venture for Walt Disney Co. (NYSE: DIS)-owned ESPN, diverging from its traditional family-friendly image. ESPN has committed to using its platforms to promote responsible gaming.
This includes maintaining journalistic integrity in covering the sports betting industry, establishing a responsible gaming committee, and developing marketing guidelines to protect fans.
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