Why Is DraftKings Stock Surging Today?

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The company and Walt Disney Co. have reportedly entered into a multiyear agreement.

  • ESPN said that beginning in December 2025, DraftKings entertainment products will be integrated across ESPN’s ecosystem, with a full rollout expected in 2026.
  • ESPN BET will shift to a sports betting content brand with DraftKings Sportsbook integrations, anchored by ESPN’s betting show, ESPN BET Live.
  • Earlier in the day, Penn Entertainment and ESPN announced that they have mutually agreed upon the early termination of their exclusive U.S. online sports betting agreement.

DraftKings Inc. (DKNG) shares rose nearly 3% in early trading after the announcement of the company becoming the exclusive official sportsbook and odds provider of Walt Disney Co.’s (DIS) ESPN, effective Dec. 1, 2025.

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ESPN said that beginning in December 2025, DraftKings entertainment products will be integrated across ESPN’s ecosystem, with a full rollout expected in 2026. “Fans will be able to enjoy betting features and access to offerings including DraftKings’ sportsbook, daily fantasy, and DraftKings Pick6 at launch,” ESPN said. 

Retail sentiment on DraftKings improved to ‘bullish’ from ‘neutral’ territory compared to a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits. 

Details Of DraftKings-ESPN Partnership

ESPN said that DraftKings will play a major role across ESPN’s digital platforms by powering a dedicated betting tab within the ESPN app, and its customers will receive special promotions for ESPN Unlimited, ESPN’s newly launched direct-to-consumer product.

The financial terms of the agreement between DraftKings and ESPN were not disclosed. ESPN BET will shift to a sports betting content brand with DraftKings Sportsbook integrations, anchored by ESPN’s betting show, ESPN BET Live, it said. 

Penn Entertainment’s Update

Earlier in the day, Penn Entertainment and ESPN announced that they have mutually agreed upon the early termination of their exclusive U.S. online sports betting agreement, effective Dec. 1, 2025.

The companies had said that under the terms of the original commercial agreement, announced in August 2023, ESPN agreed to provide Penn with media, marketing services, and the exclusive right to the ESPN BET trademark for online sports betting in the U.S. in exchange for $150 million per year in cash payments to ESPN and warrants to purchase common stock of Penn.

The agreement had an initial term of 10 years, with the right for either party to terminate the deal after the third year if specific market share performance thresholds were not met, the companies said on Thursday. Shares of Penn Entertainment declined nearly 5% in early trading.

DraftKings stock has declined 27% while Penn Entertainment has lost nearly 23% of its value in the last 12 months. 

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