Walt Disney Co.’s ESPN aims to license its brand to major sports betting companies for at least $ 3 billion over several years, according to people familiar with the matter, with the goal of capitalizing on the fast-growing online gaming industry.
The sports media giant has held talks with players who own major sports books, including casino operator Caesars Entertainment Inc. and online gambling company DraftKings Inc., according to People. ESPN has existing marketing partnerships with both companies.
The offer is the right for a suitor to use the ESPN brand name for branding purposes and potentially change the name of their sportsbook to the leading sports television network in the United States. One person said an agreement could come with an exclusive marketing commitment that would require the sports betting firm a certain amount of money in advertising on ESPN platforms.
There is no guarantee that ESPN will reach an agreement. It remains to be seen whether gaming companies are willing to pay for the ESPN name when they are already investing to establish their existing brands.
ESPN has been cautious when entering the field of sports betting. It has secured collaborations to integrate odds and content related to betting into some of its programs and has podcasts and television broadcasts dedicated to the game, including the “Daily Wager”. But executives have said they want the company not to be directly involved in gambling transactions.