PENN Entertainment in its exclusive strategic alliance with ESPN for U.S. online sports betting

On August 8, 2023, PENN Entertainment, Inc. (Nasdaq: PENN) announced that it has entered into a transformative, exclusive U.S. online sports betting agreement with ESPN, securing the exclusive right to the ESPN Bet trademark for online sports betting in the U.S. for an initial 10-year term.  PENN has agreed to make $1.5 billion in cash payments to ESPN paid over the initial ten-year term and grant ESPN approximately $500 million of warrants to purchase approximately 31.8 million PENN common shares that will vest ratably over 10 years, in exchange for media, marketing services, brand and other rights provided by ESPN.  Upon ESPN Bet meeting certain U.S. online sports betting market share performance thresholds, ESPN could receive bonus warrants to purchase up to an additional approximately 6.4 million PENN common shares.

Wachtell, Lipton, Rosen & Katz served as legal advisor to PENN.