ESPN Reportedly Looking Into $3 Billion Sports Betting Deal
The sports-betting firm would likely enter into an exclusive marketing commitment.
ESPN wants to get into sports betting, according to a new report by Fox Business.
The Walt Disney Company-owned sports giant wants to license its brand to sports-betting companies in a deal that would be worth at least $3 billion overal several years, Fox Business reported, citing “people familiar with the matter.”
A representative for ESPN did not immediately return a request for comment from Entrepreneur.
The report says ESPN has had talks with major sports-betting companies like Caesars Entertainment Inc. and DraftKings Inc. ESPN has marketing partnerships with both companies already, but under the new deal, the chosen suitor could potentially use the media company’s name for branding purposes and even rename its sportsbook after ESPN.
The sports-betting firm would likely enter into an exclusive marketing commitment and be required to spend a certain amount of money advertising on ESPN and its various platforms.
Fox Business was careful to note that there is no guarantee that a deal will be reached, given the fact that the sports-betting companies are already investing to establish their brands.
It would also be a move in a new direction for ESPN, which hasn’t dabbled much in sports betting beyond featuring some related content in shows and running podcasts and telecasts related to betting.
Sports betting is also only allowed in certain states and it requires specific licenses in those states, so the deal would give ESPN the opportunity to profit from betting without taking bets and making payouts itself.