- DraftKings (DKNG, $16.57) shares rose 8% last Friday as it was rumored to be closing a deal with Disney's (DIS, $97.16) ESPN.
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ESPN has been looking for a sportsbook partner that would enable bettors to partake in in-game betting during live broadcasting. The company has previously invested in sports gambling, though it has avoided taking actual bets. It has betting shows such as Daily Wager and marketing deals with DraftKings and Caesars Entertainment (CZR, $37.28), where links to sportsbooks are integrated into ESPN’s website.
- Both parties declined to comment on the matter, but DraftKings pointed to its "long-standing standing relationship with ESPN".
10 Oct 2022
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Rumour or Reality?
ESPN is drafting a partnership with DraftKings
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Why it matters
As more states legalize sports betting, media companies are looking for ways to cash in. Sportsbooks that are competing to sign up bettors are dolling out ad dollars to TV networks. The agreement would make strategic sense for Disney, as the company has been searching for a major sports betting partner for over a year, hoping to earn as much as $3B for an extended deal.