Disney Partners with DraftKings as ESPN’s Official Sports-Betting Provider
Disney has signed a new multiyear agreement making Boston-based DraftKings Inc. the official betting site and odds provider for ESPN sports networks, replacing the previous partnership with casino operator Penn Entertainment Inc.
Access and Integration
Players will be able to access DraftKings’ sportsbook, daily fantasy contests, and other offerings directly through ESPN’s websites and app. DraftKings will also operate a betting tab within the ESPN app and promote ESPN’s newly launched online betting service to its users.
Deal Details and Market Context
The financial terms of the agreement were not disclosed. Disney and Penn ended their decade-long, $2 billion partnership after struggling to gain meaningful market share in recent years. The initial venture aimed to leverage ESPN's brand to enter the expanding sports betting industry.
Market Reactions and Industry Moves
- DraftKings’ shares increased by 0.2% in Thursday trading.
- Penn’s shares dropped by 10.4% on the same day.
- Disney’s stock remained largely unchanged.
"Penn, based in Wyomissing, Pa., had jettisoned its Barstool Sports business and signed on with ESPN after running into regulatory issues with Barstool’s controversial founder Dave Portnoy."
The $13.7 billion sports-betting market remains largely led by DraftKings and FanDuel, a Flutter Entertainment division, despite various competitors trying to break through.
Author's Summary
Disney’s new deal with DraftKings strengthens ESPN’s position in sports betting by integrating DraftKings' offerings directly into ESPN platforms, replacing previous partnerships and tapping into a dominant market player.