Disney-owned ESPN is reported to be close to agreeing a new partnership deal with sports betting giant DraftKings.
According to a report in Bloomberg, the partnership will allow ESPN to enter the ever-expanding US legal sports betting market. However, while the reports cites sources who are close to the deal, no further details of the agreement have been revealed.
Following the report DraftKings shares jumped by as much as 14% in extended trading in New York bringing the company’s value close to $7.2 billion (€7.34 billion). Until yesterday, the company had seen a drop of 42% in share values. Despite the news and DraftKings’ surge, Disney shares remained stable.
While ESPN has invested heavily in sports betting and related media content, the company has so far steered clear of accepting actual wagers on sports.
In a recent interview, ESPN Chairman Jimmy Pitaro told Bloomberg:
“We know that sports fans are craving not just more sports betting content, but they’re craving the ability to actually place bets in a seamless fashion from their online digital sports experiences.”
It’s believed that Disney has softened its stance on sports betting and has been searching for a partner for ESPN for the past year.
Speaking at Disney’s D23 fan event in Anaheim, California, earlier this summer, Disney CEO Bob Chapek spoke of the company’s desire to take advantage of public interest in sports betting:
“Sports betting is a part of what our younger, say, under-35 sports audience is telling us they want as part of their sports lifestyle.”
Chapek also answered a question on the development of an ESPN sports-betting app, saying:
“We’re working very hard on that.”
DraftKings and ESPN have yet to comment on the rumors.
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.