Barstool Sportsbook operator rebrands as ESPN Bet in a new $1.5 billion licensing deal

As ESPN’s future drifts within the direct-to-consumer wind, a deal with Penn Entertainment will let the sportsbook rename present properties, like its Barstool Sportsbook, to ESPN Wager. In return, Penn is scheduled to pay ESPN $1.5 billion over the subsequent ten years, in addition to warrants to purchase shares of the operation and probably appoint a board member.

In early 2022, then-Disney CEO Bob Chapek said Disney’s alternative “extends to sports activities betting, gaming, and the Metaverse.” Now, Chapek is gone, the metaverse group is dismantled, and new/previous CEO Bob Iger described its playing technique in an interview as “we’re not really inflicting the bets to be made. We’re simply enabling folks to hyperlink to corporations that do this.”

This seems to be the reply to how that may work, with ESPN offering promotional companies, entry to ESPN expertise, and branding betting content material on its platforms beneath the ESPN banner.

As a part of the deal, Penn is undoing its association with Barstool, the corporate it bought, in steps that have been accomplished in February, for over $500 million, and promoting that firm again to founder Dave Portnoy “in change for sure non-compete and different restrictive covenants,” in addition to an settlement that Penn will get half of any offers he makes to resell or monetize Barstool.

In a video posted to social media, Portnoy confirmed that “for the primary time in a decade,” he once more owned 100% of Barstool, complimenting Penn and saying he continued to personal inventory in that firm. In keeping with Portnoy, “We underestimated simply how robust it’s for myself and Barstool to function in a regulated world… Each time we did one thing, it was one step ahead, two steps again. We obtained denied licenses due to me. You identify it. So the regulated business in all probability not one of the best place for Barstool Sports activities and the kind of content material we make.” In addition to “degenerate gambler” Portnoy’s sexual misconduct allegations, different points the partnership skilled included operating into hassle for stuff like a “Can’t Lose Parlay” promotion.