Published on: November 6, 2025, 11:14 AM.
Updated on: November 6, 2025, 11:22 AM.
- PENN Entertainment announced the mutual decision with ESPN to end their 10-year betting agreement
- Company aims to invest further in Canadian igaming markets
- Q3 2025 financial results reveal 7% year-over-year revenue growth in Ontario
President and CEO of PENN Entertainment, Jay Snowden, stated that the company will intensify its focus on Canadian igaming operations following the joint decision to terminate their decade-long partnership with ESPN.
The announcement was made early today. PENN and ESPN had entered into a 10-year agreement in August 2023 after PENN ended its affiliation with Barstool Sportsbook and rebranded its OSB platform to ESPN BET.
Under the agreement, ESPN was to provide PENN with its branding and marketing assistance, in return for annual cash payments of $150 million and warrants for PENN common stock over the decade.
Payments to ESPN will stop at the conclusion of Q4 2025, and from 2026 onward, PENN will have no further marketing commitments with ESPN. A total of $38.1 million is to be paid to ESPN during the fourth quarter of 2025 for marketing services incurred until December 1. From December 1 to December 31, PENN will pay $5 million for standard support for theScore Bet and Hollywood icasino services.
Increased Marketing Focus in Canada
Notably, the agreement included a provision allowing either party to terminate after Year 3. Today’s announcement serves as an early termination, effective December 1, 2025.
“While we have made substantial strides in enhancing our product offerings and establishing a unified ecosystem with ESPN, we did not succeed in positioning ESPN BET as a prominent player,” Snowden remarked during a call addressing Q3 2025 financial results. “Now is the opportune moment to realign our interactive focus towards maximizing our digital assets in Canada and Hollywood icasino offerings.”
Snowden mentioned that a new app will be made available for users to download without the need for new registration. All customer account details, balances, betting histories, pending wagers, and promotional offers will transition to the new branding effective December 1.
“This transition underscores the potential for cross-selling across our ecosystem and strengthens engagement with our extensive database of over 33 million PENN play customers.”
PENN Acquired theScore in 2021
PENN’s OSB operations in the U.S. will be rebranded as theScore Bet. The platform is currently licensed and operational across 19 U.S. states, including Washington, D.C.
“Shifting to theScore Bet presents a key opportunity for enhancing our digital efficiency, enabling us to swap fixed media expenditures for performance-driven and regionally targeted marketing that aligns with our retail and icasino presence,” he noted.
PENN officially acquired theScore in Canada in August 2021 for $2 billion in a combination of cash and stock. TheScore Bet debuted in Ontario as soon as the market was regulated in April 2022.
Snowden hinted at an intensified focus on Canadian operations, especially with plans to launch in Alberta as that market adopts an Ontario-style framework. Alberta Gaming Minister Dale Nally indicated at the Canadian Gaming Summit in Toronto in June that a “ribbon-cutting” event is anticipated in “early 2026.”
PENN’s OSB and Digital Casino Ventures
PENN manages two igaming brands in Canada: theScore Bet and theScore Casino.
“Canada has operated somewhat independently, as we have a single brand for both sports and casino there,” Snowden pointed out today. “This brand change won’t impact our Canadian endeavors at all. We’ve seen strong momentum, achieving our best-ever casino month last month in Canada, which we can expand upon with greater focus and increased marketing resources directed towards the north of the border.”
PENN successfully brought in 2.9 million new users into its ecosystem as part of its partnership with ESPN, he continued.
“We are eager for the introduction of a unified online sports betting brand throughout North America, which will pave the way for more robust economic models and a streamlined cost structure,” Snowden concluded. “Our reduced fixed media expenditures will grant us greater marketing flexibility to invest robustly in Canada, as well as our U.S. casinos and OSB markets to expect better returns, particularly with new market openings on the horizon like Alberta.”
Q3 2025 Metrics Indicate Revenue Growth in Ontario
The financial report for Q3 2025 (ending September 2025) released today indicates that the company experienced a 7% year-over-year revenue increase in Ontario, accompanied by a 10% rise in adjusted gross profit (after deducting all variable costs) and an extraordinary 83% boost in adjusted contribution profit (adjusted gross profit minus external marketing expenditures).
“We’ve been competing effectively in Canada with minimal marketing expenditures,” he remarked. “That’s set to change. We will increase our spending in Canada to capture a larger market share.
Exploring Land-Based Opportunities in Canada
Snowden was questioned about potential plans to acquire retail properties in Canada to enhance cross-selling of digital products.
“That’s something we’ve contemplated previously. However, options are limited. There are two major retail operators in Canada,” he responded. “If the right opportunities arise at the right price, we would certainly consider them. It could lead to synergistic benefits from an omni-channel approach, akin to what we have achieved in the U.S.”