Disney Stock Up As ESPN Mulls Deeper Gambling Ties With DraftKings, Caesars
Disney’s (DIS) ESPN is reportedly seeking to license its brand to major sports-betting companies including online gambling specialist DraftKings (DKNG) and casino operator Caesars Entertainment (CZR) for at least $3 billion over several years. Disney stock rose. DKNG and CZR stock popped.
The Wall Street Journal report says Disney is offering potential partners the right to use the ESPN name for branding and possibly to rename their sportsbooks after the sports TV network.
ESPN has existing marketing partnerships with both companies.
ESPN could also agree to an exclusive marketing commitment that would require the sports-betting firm to spend a certain amount of money advertising on ESPN’s platforms, the WSJ report said, citing sources.
Besides DraftKings, FanDuel and BetMGM are among the major players in online sports betting. MGM Resorts (MGM), which operates BetMGM, is also reportedly considering buying betting behemoth Flutter Entertainment.
Gambling revenue has exploded since a 2018 Supreme Court ruling cleared the way for all states to legalize sports betting. Currently, 32 states and the District of Columbia have legalized sports wagering.
PlayUSA.com reports U.S. betting has notched $65 billion in sports wagers and $4.8 billion in gross gaming revenue so far in 2021.
Disney Stock, Gambling Stocks
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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