ESPN Bet, a rebranded sports gambling app from Penn Entertainment, is here

ESPN Bet, the newly rebranded sports-gambling service, officially launched in 17 U.S. states on Tuesday. It is a product of the collaboration between Penn Entertainment, the service owner, and ESPN, the Disney-owned sports channel. The two companies signed a lucrative $1.5 billion deal in August, giving Penn the rights to operate ESPN Bet while ESPN will serve as its key promoter across online and broadcast platforms.

The launch of ESPN Bet on Tuesday was highly anticipated, and the app was expected to go live in 17 states including Arizona, Colorado, Illinois, Indiana, and many others. The initial agreement between Penn and ESPN grants Penn the rights to use the ESPN brand for a decade, with the option to extend for another 10 years. Alongside the licensing deal, Penn has also agreed to provide ESPN with rights worth approximately $500 million to purchase shares in the company.

ESPN Bet is actually a rebranding of the existing sports-betting app, Barstool Sportsbook, which Penn sold back to its founder in August. The decision to rebrand a sports-gambling app under the ESPN name could be a groundbreaking move for Disney, which is known for its family-friendly image and not commonly associated with sports gambling. In light of this, ESPN has pledged to use its platforms to educate sports fans on responsible gaming and uphold journalistic integrity in covering the sports betting industry.