ESPN on Tuesday announced a betting joint venture with casino operator PENN Entertainment, which soon will rebrand its Barstool Sportsbook to ESPN Bet.
Why it matters: This is the sports network’s first major gambling deal, and comes after Fox closed down its own sportsbook.
Details: As part of the deal, Penn is selling sports media group Barstool back to founder Dave Portnoy.
What they’re saying: “We underestimated just how tough it is for myself and Barstool to operate in a regulated world,” Portnoy said in a video announcement.
By the numbers: Penn agreed to make $1.5 billion in cash payments over 10 years to ESPN, which also gets granted $500 million of warrants to purchase 31.8 million Penn common shares that vest over the same decade-long period.
The bottom line: ESPN has wanted to get into betting for years, but hasn’t wanted to itself operate a sportsbook, out of fear of editorial conflicts of interest.
Dr. Sanjay Gupta: Your questions answered as FDA pushes to phase out certain food dyes
The FDA is pushing to phase out petroleum-based food dyes in foods sold in the US. Dr. Sanjay Gupta answers your questions about why Europe,…
Thought Leader: Sanjay Gupta
Dr. Leana Wen: Should you get the shingles vaccine? Answering reader questions.
In addition to protecting against shingles, the vaccine could decrease dementia risk. In light of the worsening measles outbreak, I’ve written several articles emphasizing the…
Thought Leader: Leana Wen
Peter Zeihan: Should the US Stay in the Middle East?
In his latest video recorded in New Zealand, Peter Zeihan, a renowned geopolitical strategist, tackles a key question that shapes U.S. foreign policy: Should the…
Thought Leader: Peter Zeihan
