ESPN’s New Stream Service with Direct Betting Options

ESPN will launch its long-awaited direct-to-consumer streaming service this fall, priced at $29.99 per month. The platform will include enhanced sports betting features, although the network has provided limited details about what those enhancements will look like.

Announced by ESPN Chairman Jimmy Pitaro earlier this week, the launch marks a significant shift in the network’s distribution model. Pitaro described the new streaming venture as potentially the “largest transition” in ESPN’s history, a notable statement in an industry still adjusting to rapid changes in consumption habits post-Covid.

The launch also carries weight for Penn Entertainment, ESPN’s exclusive sports betting partner under the ESPN BET brand. Speaking on Penn’s recent earnings call, Chief Technology Officer Aaron LaBerge called the upcoming integration a “first-in-market” feature and said the company is “incredibly excited” about the rollout.

Building on Existing Betting Features

This isn’t ESPN’s first step into integrated sports betting. In November 2024, the company rolled out a feature allowing users to seamlessly link their ESPN accounts with the ESPN BET app. The integration required just a quick tap, simplifying access between the two platforms. According to Barclays analyst Brandt Montour, this convenience paid off: ESPN BET experienced a measurable increase in user engagement following the update. Customers spent more time on the app, placed bets more frequently, and demonstrated a greater appetite for higher-risk, higher-reward parlay wagers. These behavioral shifts provided early evidence of the potential for a tightly connected media-betting ecosystem.

Building on that momentum, ESPN plans to extend these watch-and-bet capabilities into its new streaming service, which will debut later this year. While specific features have not yet been fully disclosed, ESPN and its betting partner Penn Entertainment have both signaled that the platform will include deeper, more interactive betting integrations. Penn CTO Aaron LaBerge described the upcoming tools as “best in class,” suggesting the experience will go beyond existing standards in the sports betting space. However, the companies are keeping exact details under wraps for now, likely as they continue to refine the product and navigate regulatory and licensing considerations.

In parallel with the betting enhancements, ESPN is also laying the groundwork for a more customized viewing experience. At a company event on Tuesday, Chairman Jimmy Pitaro discussed future plans for a personalized version of SportsCenter, where viewers could pick and choose segments tailored to their specific interests—whether by sport, team, or storyline. While this personalization vision is still in development, it points to a broader shift in how ESPN intends to serve fans in the digital era.

Sports betting could play a role in this personalization strategy, but there are obstacles. ESPN BET Vice President Mike Morrison noted that certain rights agreements may limit how far the company can go in delivering customized betting content. Still, he expressed interest in potential offerings like a “streaming game pass”—an incentive-based model where users who place bets on a game could receive access to an exclusive or enhanced viewing experience. It’s a concept that ties together content, engagement, and wagering, and could form the backbone of ESPN’s long-term digital approach.

This could be the largest transition in the history of ESPN.

 

Pressure to Grow Market Share

For Penn Entertainment, the fall launch comes at a critical time. ESPN BET continues to trail far behind market leaders FanDuel and DraftKings in the U.S. online sports betting space. CEO Jay Snowden said he believes the upgraded features will offer a level of “personalization and differentiation” not currently available in the market, giving ESPN BET a chance to grow its share before the end of the year.

The Penn-ESPN partnership began in 2023 with a 10-year, $1.5 billion licensing deal. The agreement includes a clause that allows either party to exit the deal after three years, placing added pressure on both companies to deliver results.

In a statement, ESPN said more features will be rolled out over time, and further announcements on betting enhancements are expected in the near future. For now, ESPN appears focused on executing a smooth rollout while keeping its most ambitious features under wraps.