ESPN Penn Entertainment Deal Is Disney’s First Move Into Sports Betting

Key Takeaways

• ESPN and Penn Entertainment have entered into a multi-year sports betting deal
• The move comes as Disney weighs up ESPN’s shift to direct-to-consumer content
• Penn shares shot up as high as 20%, but Disney’s mixed earnings beat swayed the stock on the downside

Sports channel ESPN and betting company Penn Entertainment have announced a multi-year, multi-billion dollar deal to tap into the rapidly growing sector. It’s a nut other media companies have struggled to crack, but with Disney’s hulk behind it, the deal could represent a new revenue stream for the Magic Kingdom.

With the ESPN and Penn Entertainment deal, Disney is officially entering the world of sports betting. The move has raised a few eyebrows at what Disney has planned long-term, especially after a mixed earnings beat, but it was great news for Penn stock. We’ve got the details and what the stock market reaction was below.