Why Is DraftKings Stock Surging Today?
DraftKings (DKNG) shares jumped nearly 3% in early trading following the announcement of a new multiyear partnership with Walt Disney Co. (DIS). Starting in December 2025, DraftKings will become the exclusive official sportsbook and odds provider for ESPN.
Partnership Details
ESPN revealed that DraftKings’ entertainment products will be embedded throughout its platform, with a full integration expected by 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.
DraftKings will also power a dedicated betting tab within the ESPN app, and its customers will receive exclusive promotions for ESPN Unlimited, ESPN’s new direct-to-consumer service.
Market Reaction and Sentiment
Retail investor sentiment on DraftKings improved from ‘neutral’ to ‘bullish’ according to Stocktwits data, with message volumes reaching high levels.
Additional Changes in Sports Betting Landscape
The financial terms of the DraftKings-ESPN deal were not disclosed. ESPN BET will transform into a sports betting content brand featuring DraftKings Sportsbook integrations, centered around ESPN’s betting show, ESPN BET Live.
Separately, Penn Entertainment and ESPN agreed to end their exclusive U.S. online sports betting partnership early, effective December 2025.
Author’s Summary
DraftKings’ strategic alliance with ESPN is boosting its market appeal by integrating sports betting deeply into ESPN’s digital ecosystem starting late 2025.