Why Is DraftKings Stock Surging Today?
DraftKings (DKNG) shares rose nearly 3% in early trading following the announcement of a new multiyear agreement with Walt Disney Co. (DIS). Starting December 2025, DraftKings will become the exclusive official sportsbook and odds provider for ESPN, Disney's sports network.
Integration Across ESPN’s Ecosystem
ESPN revealed that DraftKings entertainment products will be integrated throughout its ecosystem, with a complete rollout expected by 2026. According to ESPN:
“Fans will be able to enjoy betting features and access to offerings including DraftKings’ sportsbook, daily fantasy, and DraftKings Pick6 at launch.”
Impact on User Experience and Platform Features
DraftKings will have a significant presence on ESPN's digital platforms, powering a dedicated betting tab within the ESPN app. Customers will also receive special promotions for ESPN Unlimited, the network’s newly launched direct-to-consumer product.
Additionally, ESPN BET will become a sports betting content brand featuring DraftKings Sportsbook integrations, anchored by ESPN’s flagship betting show, ESPN BET Live.
Market and Industry Reactions
- Retail sentiment on DraftKings shifted from 'neutral' to 'bullish' with high message volumes, based on Stocktwits data.
- Financial details of the DraftKings and ESPN agreement were not disclosed.
- Separately, Penn Entertainment and ESPN agreed to terminate their exclusive U.S. online sports betting agreement early, effective December 2025.
Author’s summary: DraftKings stock gains reflect its new exclusive sportsbook partnership with ESPN, set to transform ESPN’s platform and boost DraftKings' presence in digital sports betting starting December 2025.