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Read Full BioA reported multi-billion-dollar deal between the NFL and ESPN could have a significant impact on ESPN Bet’s fortunes, with increased betting integration into NFL coverage.
The Athletic reported that ESPN has reached an agreement to purchase RedZone, NFL Network, NFL’s fantasy football operations, as well as seven additional regular-season games.
This could have a significant impact on ESPN Bet’s fortunes, with the deal also reported to offer the potential to integrate sports betting and other special features.
ESPN Bet Struggling to Make Impact
This is likely to lead to odds integration into the coverage, linking to ESPN Bet, the sports betting platform of PENN Entertainment, which has struggled to gain a foothold in the industry.
Activist group HG Vora has been vocal in its displeasure with the direction PENN has taken in its sports betting ventures. The company spent $2 billion to acquire ESPN Bet, but has yet to see the expected growth of the platform.
PENN initially targeted a 20% share of the online sports betting market by 2027, but CEO Jay Snowden conceded the platform is “not on pace” to reach it.
This year, it forecasted a 4.7% share of the market at the end of the year compared to 3.7% at the end of 2024. However, its share dropped to 2.3% for April and May, down from 2.7% in the first quarter. The company will report its second-quarter earnings this week.
New ESPN App Could Provide Market Foothold
ESPN is set to launch a new $29.99 subscription service to view all NFL programming through the app. Betting integration through ESPN Bet could be the boost the platform needs to close the gap on market leaders FanDuel and DraftKings.
PENN was reportedly increasingly favoring ending the partnership with ESPN Bet when the deal is up for review next year, but the contract with the NFL could change that.
A reported $35 billion was projected to be wagered on the NFL last season, according to the American Gaming Association.
Could ESPN Bet Gain Traction in Fantasy Sports?
The deal also includes the NFL’s fantasy football operations, which again could provide ESPN Bet with a unique opportunity to capitalize on a clampdown on DFS operators.
California’s Attorney General, Rob Bonta, recently announced that DFS games are illegal in the state, which has led to a reduction in the offerings of major operators, such as Underdog and PrizePicks. Bonta recently stated that enforcement action will be forthcoming against operators who continue to offer products in violation of the law.
ESPN Bet does not offer DFS, but instead offers prop betting, which could be integrated into the fantasy football sphere.
Deal Not Over the Line Yet
Neither the NFL nor ESPN has announced any official confirmation of the deal, but it could come as early as this week.
The agreement, which has been in discussion during four years of on-and-off negotiations, would be subject to regulatory approval. A source told Front Office Sports, “This is a massive deal. It will require government oversight and approval. And we all know how [US President Donald] Trump likes to poke the NFL from time to time.”
