Why Is DraftKings Stock Surging Today?
Shares of DraftKings (DKNG) rose nearly 3% in early trading following the announcement of a multiyear partnership with Walt Disney Co. (DIS). DraftKings will become the exclusive official sportsbook and odds provider for ESPN, starting December 2025.
Integration With ESPN
Beginning in December 2025, DraftKings' entertainment products will be integrated throughout ESPN's ecosystem, with a full rollout expected in 2026. ESPN stated:
“Fans will be able to enjoy betting features and access to offerings including DraftKings’ sportsbook, daily fantasy, and DraftKings Pick6 at launch.”
Enhanced Presence on ESPN Platforms
DraftKings will have a significant role across ESPN’s digital platforms, powering a dedicated betting tab within the ESPN app. Customers will also receive exclusive promotions for ESPN Unlimited, ESPN’s newly launched direct-to-consumer product.
ESPN BET Rebranding
ESPN BET will shift to a sports betting content brand incorporating DraftKings Sportsbook integrations, anchored by ESPN’s betting show, ESPN BET Live. Financial details of the deal were not disclosed.
Market Reactions and Sentiment
- Retail investor sentiment on DraftKings improved from ‘neutral’ to ‘bullish’ in a single day.
- Message volumes on Stocktwits related to DraftKings were reported at ‘high’ levels.
Changes in Other Sports Betting Partnerships
On the same day, Penn Entertainment and ESPN announced an early termination of their exclusive U.S. online sports betting agreement effective December 2025.
“Penn Entertainment and ESPN have mutually agreed upon the early termination of their exclusive U.S. online sports betting agreement, effective Dec.”
Author’s summary: DraftKings’ stock surged after signing a multiyear exclusive sportsbook deal with ESPN, integrating new betting features into ESPN’s platforms and replacing Penn Entertainment in the U.S. market.