Disney is looking for sports betting opportunities. The company wants to venture into sports betting via ESPN. In addition, CEO Bob Chapek said that they are moving towards a presence in the online sports wagering market.
Also, Disney wants to partner with sports betting firms in a meaningful manner. Chapek made the statement during the company’s fourth-quarter financial report. According to sports betting software reports, the company had a soft fiscal year.
Sports remained Disney’s bright spot. Its streaming service subscriptions increased by 66 percent during the fiscal year. Also, 90 percent of most-watched broadcasts on Disney’s TV networks were sports events.
According to betting software providers, Disney signed a 10-year deal with the NFL that starts in 2023. However, ESPN’s ad revenue was flat during the last quarter of the fiscal year. Chapek said that sports betting could help the firm create new revenue streams. Also, it could attract a younger audience.
Disney is considering venturing into gambling more this year. Chapek sees ESPN as the best sports betting bookie platform for the plan. In 2020, ESPN signed deals with DraftKings and Caesars Entertainment. They connected their sportsbooks to ESPN.com. In August, ESPN discussed a brand licensing deal with either DraftKings or Caesars Entertainment worth $3 billion.
There are questions on how Disney will venture into the gambling industry via ESPN. Sports fans are interested in sports betting. As a result, Disney wants to bring sports wagering to ESPN viewers.
Since the U.S. High Court struck down a prohibition on sports wagering in 2018, 32 states and Washington, D.C. have dispatched legitimate business sectors, and the business is ablaze and loaded. Americans bet $24 billion with legal sportsbooks in the first half of the year, as indicated by information from the American Gaming Association, which generally converts into $2 billion in gross gaming income.
By 2030, the business is relied upon to create $30 billion in revenues of an expected $400 billion in sports bets. In addition, media organizations—from Fox to Sports Illustrated—have effectively cut arrangements with sports wagering organizations.