• Thu. Sep 23rd, 2021

ESPN In search of $3 Billion Sportsbook Licensing Deal, Held Talks with Caesars, DraftKings


Aug 28, 2021

Posted on: August 27, 2021, 12:52h. 
Final up to date on: August 27, 2021, 01:41h.

Todd Shriber Learn Extra

Walt Disney’s (NYSE:DIS) ESPN unit is reportedly purchasing its iconic model to sportsbook operators in a bid to probably land a $3 billion, multi-year pact.

Scenes from ESPN’s Day by day Wager present, filmed in Las Vegas. The sports activities community is seeking to license its title to a sportsbook operator. (Picture: ESPN)

The Wall Avenue Journal reported this afternoon that “the worldwide chief in sports activities” already held discussions with gaming corporations, together with Caesars Leisure (NASDAQ:CZR) and DraftKings (NASDAQ:DKNG). Connecticut-based ESPN reached advertising and marketing offers with each corporations final 12 months.

Underneath the phrases of the accords, the 2 gaming operators will have the ability to run promoting on ESPN.com, the most-visited sports activities web site on this planet, and on the ESPN cellular utility.
Caesars and ESPN have one other relationship by the use of the Day by day Wager betting present being filmed at a studio at LINQ Resort on the Las Vegas Strip. Caesars runs that casino-resort.
The Journal piece didn’t establish different gaming corporations with which ESPN has held talks.
What ESPN Is Trying For
Given its standing as probably the most recognizable sports activities community within the US, and up to date efforts to spice up betting-related content material, it’s clear ESPN desires to get a slice of the quickly increasing sports activities wagering pie. It’s additionally possible the community doesn’t need to be concerned in working a sportsbook and the regulatory course of that comes with that enterprise.

On supply is the precise for a suitor to make use of the ESPN title for branding functions and probably rename its sportsbook after the main sports activities TV community within the US,” the Journal studies, citing folks near the talks. “A deal might include an unique advertising and marketing dedication that may require the sports-betting agency to spend a sure sum of money promoting on ESPN’s platforms.”

Within the ultra-competitive sports activities betting panorama, model recognition issues. That a lot is confirmed by the three largest gamers within the house — FanDuel, betMGM, and DraftKings.
Latecomers and upstarts usually have some model consciousness of their very own, whether or not it’s with sure demographics or gamblers acquainted with an organization through land-based casinos. Backside line: Operators face excessive buyer acquisition prices, and model recognition may also help mitigate these bills, whereas aiding in buyer retention.
betting/Media Intersection Continues
ESPN seeking to license its model to a sportsbook operator continues a prolonged run of media corporations pushing into the betting world.
ESPN rival Fox Sports activities actively pushes the FOX bet model, whereas final 12 months, Bally’s Corp. (NYSE:BALY) struck an settlement to places its title on regional sports activities networks (RSNs) owned by Sinclair Broadcast Group.
CBS Sports activities has a deal whereby its knowledge is offered by William Hill, which was acquired by Caesars, and Penn Nationwide Gaming (NASDAQ:PENN), which owns a stake in Barstool Sports activities and just lately introduced the acquisition of Rating Media & Gaming (NASDAQ:SCR). Analysts estimate media partnerships with iGaming and sports activities betting operators will drive $30 billion in income by 2030.
The Journal article doesn’t point out if ESPN has a choice for a take care of Caesars or DraftKings. However Disney owns six p.c of DraftKings non-voting fairness, which the leisure conglomerate bought through its 2019 $71.3 billion takeover of twenty first Century Fox.

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