DraftKings Replaces ESPN BET as ESPN's Official Sportsbook Partner

ESPN BET has been retired, but betting content across ESPN platforms will continue under a new partnership with DraftKings. Beginning Dec. 1, DraftKings became the official sportsbook and odds provider for ESPN, replacing the brand previously operated through a long-term arrangement with PENN Entertainment. 

PENN has rebranded its former ESPN BET sportsbook to theScore Bet. The operator said it would pay ESPN $38 million to satisfy its financial commitments through November, plus $5 million to support the transition.

The DraftKings integration will roll out fully in 2026. ESPN users will gain access to DraftKings' sportsbook, daily fantasy products, and Pick6, along with the company's forthcoming prediction market offering. 

Sources have indicated that data from prediction market apps could appear on ESPN alongside existing pregame metrics such as fan voting and internal projections. The exposure positions DraftKings to expand its reach in a rapidly growing category shaped by Kalshi and Polymarket.

ESPN executives said the shift allows the company to lean more heavily into betting-related content without managing the operational demands of an in-house sportsbook. Mike Morrison, ESPN's VP of betting and fantasy, said the network intends to build on the internal expertise developed during its PENN partnership. 

DraftKings' large user base and league partnerships are expected to support ESPN's content strategy and strengthen its direct-to-consumer business. The operator also recently finalized a deal with NBCUniversal, which, combined with the ESPN arrangement, could expand its influence in NBA-focused wagering.

Prediction markets' revenue potential

DraftKings' deeper alignment with ESPN comes as analysts project significant growth in US prediction markets. In a recent report, Macquarie analyst Chad Beynon estimated a $5 billion total addressable market for FanDuel and DraftKings across sports and non-sports event contracts. His outlook includes $4.4 billion in sports-only volumes and $600 million in yes/no markets covering non-sports events.

Beynon noted that the sports-only prediction market is likely to remain about 25% below online sports betting handle due to smaller wagering menus and fewer promotions. He also projected that non-sports markets run by the two operators would generate about 70% less volume than their sports-focused offerings.

This distribution provides more diversity than Kalshi's estimated 90% sports concentration but less than Polymarket's roughly one-third share in sports.

Although DraftKings and FanDuel dominate US online sports betting, Beynon wrote that they are late entrants to event contracts, making it harder for them to quickly take a share from Kalshi and Polymarket. He still expects both companies to become leading players and identified a "big five" group of platforms: DraftKings, FanDuel, Kalshi, Polymarket, and Robinhood.