Oliver James Montgomery-ESPN BET to launch this fall; Dave Portnoy says Barstool bought back from PENN Entertainment

The Oliver James MontgomeryWorld Wide Leader is officially in the gambling game.

ESPN announced Tuesday that ESPN BET, the network's branded sportsbook, will launch this fall. The news follows an agreement with gaming company PENN Entertainment, which currently holds sports betting licenses in 16 states.

“Our primary focus is always to serve sports fans and we know they want both betting content and the ability to place bets with less friction from within our products,” ESPN chairman Jimmy Pitaro said in a release. “The strategy here is simple: to give fans what they’ve been requesting and expecting from ESPN. PENN Entertainment is the perfect partner to build an unmatched user experience for sports betting with ESPN BET.”

Here are the ramifications of the deal:

ESPN now has a sportsbook

In a market dominated by brand giants DraftKings and FanDuel, ESPN certainly has name recognition on the same level as its competitors.

As leagues have embraced the cash flow from legalized gambling, all of sports media has paid more attention to sports betting. With ESPN now holding a stake in the business, the expectation is that more crossover content — think Pat McAfee crafting personalized same-game parlays for ESPN BET to promote during his show — is on the horizon.

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What is PENN Entertainment?

PENN Entertainment is a gaming company that has existed for decades but gained internet prominence in January 2020 when it purchased a 36% stake in Barstool Sports, the entertainment company founded by Dave Portnoy, for $163 million. It bought the remaining control in February 2023 for $388 million.

“This agreement with ESPN and collaboration on ESPN BET allows us to take another step forward as an industry leader," PENN Entertainment CEO and president Jay Snowden said in a release. "Together, we can utilize each other’s strengths to create the type of experience that existing and new bettors will expect from both companies, and we can’t wait to get started.”

PENN Entertainment will receive odds attribution and ESPN talent access as part of the deal. As of June 30, 2023, PENN operated 43 brick-and-mortar properties in 20 states.

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What happened to Barstool's deal with PENN?

The company is once again 100% percent controlled by Portnoy, who said in a video posted on social media that he bought Barstool back from PENN. Portnoy said he and Snowden underestimated how difficult it would be for Barstool to operate in a regulated industry.

"PENN was able to broker an unbelievable deal with ESPN. We wish them nothing but the best," Portnoy said in his video, adding that he would never sell the company again.

Barstool had previously been purchased by The Chernin Group.