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ESPN dives into sports gambling with a $2 billion deal.

ESPN dives into sports gambling with a $2 billion deal.ESPN dives into sports gambling with a $2 billion deal.

ESPN dives into sports gambling with a $2 billion deal.

Publish – 9 aug , 2023

Casino proprietor PENN Entertainment has severed ties with Barstool, the sports-oriented website, and forged a substantial $2 billion agreement with ESPN to establish ESPN Bet.

In the upcoming fall, the digital Barstool Sportsbook will undergo a rebranding process, transforming into ESPN Bet, according to a statement released by PENN on Tuesday. The company secured exclusive rights to utilize the ESPN Bet trademark for a span of 10 years, with the possibility of extending this agreement for another decade. Renowned personalities from ESPN will actively endorse this betting service.

Jay Snowden, CEO and president of PENN, conveyed in an official statement, “ESPN Bet will be seamlessly integrated within ESPN’s extensive editorial, content, digital, linear product, and sports programming ecosystem.”

Over the following ten years, PENN is set to disburse $1.5 billion in cash payments to ESPN, while also conferring roughly $500 million worth of its own shares to the network. Furthermore, ESPN will gain the privilege to nominate a member to PENN’s board three years down the line.

In order to dissolve specific “non-compete and other restrictive covenants” with Barstool, PENN opted to sell off its entire portfolio of Barstool common stock to the founder of the sports site, David Portnoy.

ESPN dives into sports gambling with a $2 billion deal.
credit – getty

 

ESPN dives into sports gambling with a $2 billion deal.

In an impromptu “emergency press conference” posted on the platform formerly known as Twitter (now X), Portnoy revealed that this marks the first instance in a decade where he has possessed “100%” ownership of Barstool Sports. He cited challenges in dealing with regulatory authorities in the gambling industry, emphasizing, “The regulated sector might not be the most suitable environment for Barstool Sports and the content we generate. Penn was able to broker an astonishing deal with ESPN.”

PENN additionally stipulated that if Portnoy eventually sells off Barstool, it will be entitled to receive 50% of the overall proceeds. Portnoy himself declared, “By the way, I have no intention of ever selling Barstool Sports. I’ll hold onto it for the rest of my life.”

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