Disney Partners with DraftKings as ESPN’s New Sports-Betting Ally
Walt Disney Co. has forged a new multiyear partnership with DraftKings Inc., designating the sportsbook as the official betting site for its ESPN sports networks. This agreement marks a shift from the previous collaboration with Penn Entertainment Inc.
Details of the Partnership
The partnership with DraftKings will commence on December 1. Users will gain access to a range of DraftKings products, including sports betting and daily fantasy contests, directly through the ESPN platforms. A dedicated betting tab will be integrated into the ESPN app, enhancing the user experience.
Ending of Previous Agreement
The deal with DraftKings comes on the heels of Disney’s conclusion with Penn, which lasted 10 years and was valued at $2 billion. Reports indicate that this venture did not achieve the desired market share over the past two years, prompting Disney to make a change.
- Previous Partner: Penn Entertainment Inc.
- Duration of Previous Agreement: 10 years
- Value of Previous Deal: $2 billion
Market Competition
DraftKings and FanDuel currently dominate the $13.7 billion sports-betting market. Despite several attempts to gain traction, the ESPN Bet brand struggled to compete effectively. Analysts note that ESPN Bet holds less than a 3% share of the mobile sports-betting market, ranking seventh among competitors.
Market Reaction
Following the announcement, shares for DraftKings rose by 8.5%, while Penn saw a 9.2% increase in its stock. Disney’s shares remained relatively stable during early trading.
Future Outlook
Looking ahead, Penn Entertainment will launch its own sports betting platform, operating under theScore Bet brand beginning December 1. The ESPN Bet brand will continue to serve as a platform for ESPN programming, but the new collaboration with DraftKings is poised to strengthen Disney’s foothold in the sports betting landscape.
