Bloomberg: ESPN is preparing a large deal with DraftKings

One of the biggest developments of the last week was the Friday announcement by Bloomberg which revealed that Walt Disney Co.’s ESPN is close to striking a big, undisclosed deal with DraftKings, Inc., a gambling firm.

The news had an immediate bearing on DraftKings’ stock which surged. Bloomberg cited people close to the matter who preferred to remain unnamed. It seems that ESPN has now finally decided to stop shying away from the sports betting segment, something that conflicted with Disney’s own adverse position on gambling and the immense potential that the media giant offshoot of the company stands to reap.

Now, though, these tribulations and hesitations seem to have been overcome. As such, ESPN will be seeking to capitalize on that, not least because of the mass legalization of sports betting in the United States, with California and Florida both taking decisive strides of their own. A DraftKings spokesperson whom Bloomberg approached simply stated that ESPN and DraftKings had a long-standing relationship.

The two seem like natural partners. ESPN first dipped its toes in sports betting with its Daily Wager show, an all-out program about sports betting, with tips, analyses, prominent guests who gabbed on about sports gambling, and worthwhile picks on airtime. The company already has market deals with DraftKings, and Caesars Entertainment, and their odds are readily displayed on ESPN’s website as well.

Meanwhile, ESPN remains a very important asset to Disney. Disney CEO Bob Chapek spoke to Bloomberg in September and told the publication that ESPN will play an important role in the future of Disney as a whole. What role exactly remains to be seen, but he confirmed that younger consumers are interested in sports betting and that he seems interested in giving them that.

When sports betting was only getting started in the United States in 2018, Disney was among the companies to be reluctant to associate itself in any capacity. The company insisted that sports betting and gambling did not see eye-to-eye with its family-friendly policies in places such as Florida.

But now, as interest and acceptance of sports gambling have increased, there is a very good financial and moral reason why Disney is exploring this prospect with ever-growing intensity. What the exact deal between ESPN and DraftKings could look like, we will find out it seems soon enough. ESPN has struck various partnerships over the past months, including one with Jackpocket in New York.

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