ESPN and DraftKings Close to Signing a Sports Betting Deal

Details: Category: Gambling Industry; Created: Tuesday, 04 October 2022 23:08

Various gambling industry news sources show that DraftKings and ESPN are close to signing a sports betting deal. Also, DraftKings would rebrand its sportsbook to include the name of the sports broadcasting company.

Both ESPN and DraftKings would gain from working together. ESPN could make money from the growing market for sports betting. On the other hand, DraftKings will be linked to the most popular sports broadcaster, including college basketball and football. As part of its purchase of Fox's entertainment assets, Disney currently owns 6% of DraftKings.

Pay per head bookie operators and sports fans watch sports events using the ESPN app. Also, a large number of viewers are interested in betting on sports. Thus, DraftKings' offering sports betting through the app could improve its market share.

DraftKings and ESPN Sports Betting Deal

Disney has a long history of creating entertainment like TV shows, movies, and especially theme parks with clean characters and themes. Up until now, the company has avoided chiefly gambling ventures. However, the size of the sports betting market has caused management to look at things from a different angle.

Disney CEO Bob Chapek recently said that the company might be interested in giving its customers "the ability to bet on sports without having to have four screens in front of you." A partnership between DraftKings and ESPN would be in line with this idea.

One problem with this is that Disney wants a considerable fee—around $3 billion over several years—to let a sports book rebrand itself with the mighty ESPN name. The app would allow people to bet on sports. Betting on Overwatch can also be a possibility.

DraftKings would have to spend a lot of money on this since its business is worth about $7.4 billion. But paying these fees over several years would make the cost less painful, as would the likely big boost in revenue and profit margin that DraftKings would get from the partnership.

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