Disney to boost ESPN brand name with online sports betting presence

Disney continues to embrace sports wagering, and it is looking for ways to expand its online wagering presence in perhaps the most dramatic way possible. Disney CEO Bob Chapek said during the company's fiscal fourth-quarter conference on Wednesday said that Disney can leverage its partnership with third parties in the sports wagering sector meaningfully.

According to Chapek, “Disney continues to see tremendous opportunities in sports, which includes, our innovative programming, the right steels, and the flexibility from the DTC business, which has seen ESPN+ (one of Disney’s subsidiaries) subscribers increase by 66 per cent over the past year. "All of this demonstrates that we have a clear ambition in sports."

Known sports network ESPN+ has long signalled that wagering and fantasy sports have the potential to bolster the streaming service and the whole network. As part of its increased exposure to sports betting, ESPN agreed to separate multi-year deals with DraftKings and Caesars Entertainment in September 2020.

Impact on Disney brand

Investing in a Disney & gambling merger was once a huge turn off to investors, and consumers most importantly. However, studies have shown that the attitudes and reception sports wagering are receiving in the US is changing, as adults no longer hold the same negative views of sports betting/gambling like they did in the past.

Chapek says that while Disney is evaluating the issue, any deeper move won't damage the company's iconic brand which is often associated with compatibility and family friendliness. Rather, ESPN's brand might be stronger if it were directly associated with wagering.

 According to the Disney chief executive, the company did extensive research on the impact of gambling on the ESPN brand and the Disney brand in terms of changing customers’ view of gambling's acceptability. It appears that there is a significant level of isolation between both activities.

In keeping up with consumer trends, Chapek adds, Disney must seriously consider getting into gambling in a bigger way, and ESPN is the perfect platform for such a move. ESPN has a great deal of brand recognition. According to reports earlier this year, ESPN held talks with gaming companies, including DraftKings and Caesars, over the use of its brand for $3 billion. A deal has yet to be announced on that front.Away from this, the importanceplacing bets at a top platform, including www.novibet.ie/casino, cannot be ignored

No Acquisition talk is underway

As Chapek noted on a conference call, Disney is aggressively pursuing sports wagering. However, a possible acquisition related to that effort was not mentioned. ESPN was rumoured to be a potential buyer for Rush Street Interactive in September, an operator that Disney can buy easily, and which would greatly increase Disney's profile in sports wagering.

In recent weeks, Fanatics was linked to acquisition rumours regarding RSI, confirming the fact that ESPN may have competition in the potential acquisition of the gaming company. In recent months, speculation about a possible takeover with RSI as the target has cooled. However, consolidation remains a growing trend in the sports gambling industry.

Bottom Line

Going into the sports betting industry is a step further for the entertainment giants to expand their realms in entertainment. However, they would require proper research to know if their audience will accept this venture before they launch their platform.