ESPN SPORTSBOOK? ESPN EXPLORES DEAL TO ENTER LEGAL US SPORTS BETTING MARKET

Kevin Rogers Sports Betting Expert

6 minute read

As the Worldwide Leader in Sports, ESPN has already made a name for itself in the sports industry. It now appears that the company wants a piece of the rapidly expanding legal US sports betting industry.

ESPN already has working partnerships with Caesars Entertainment and DraftKings as two of the bigger legal US sportsbook operators.

Caesars currently provides sports betting data across all ESPN media platforms. DraftKings is the network’s partner for daily fantasy sports (DFS).

With as much as $3 billion on the line, one of those companies could be ESPN’s betting partner for a branded sportsbook. This move would not be unprecedented as media companies and legal sports betting companies continue to come together.

This would be easy money for ESPN, and probably a first step in becoming a sportsbook. But not sure it’s going to be easy to find the right operator partner. $DIS $DKNG $PENNhttps://t.co/eUa4Yw1CeQ— Tavish ZM (@TZM_TMT) August 27, 2021

Earlier this year, 888 partnered with Authentic Brands to develop the Sports Illustrated Sportsbook. An initial launch in Colorado of the SI mobile sports betting app is planned for some time this year.

ESPN getting in the legal sports betting game would raise the stakes all the higher. The big question that remains is which legal book becomes the operating partner.

WHO ARE THE CONTENDERS FOR AN ESPN SPORTSBOOK?

Based in Boston, DraftKings first made a name for itself as a popular DFS site. In a little over three years, the company has grown to become the second biggest legal US sportsbook in terms of market share. Landing a major media brand like ESPN would give DraftKings a tremendous boost against its biggest competition.

Caesars Entertainment was a bit late to the party with its entry into the lucrative legal US online sports betting industry. However, the gaming and entertainment giant has gone all in with its current efforts.

First, Caesars acquired UK-based William Hill as one the biggest bookmakers in the world. More recently, the company has committed a billion dollars to rebrand this operator as Caesars Sportsbook in the legal US market.

As a major player across the legal iGaming sector, Caesars benefits from a huge database of customers through its Caesars Rewards program.

WHAT’S STANDING IN THE WAY?

Another question surrounding ESPN’s plans is its parent company Disney.

In the past, this family-oriented entertainment corporation may have been reluctant to dip its feet into the legal US sports betting market. However, the tremendous upside for an ESPN sportsbook brand is too lucrative of an opportunity to ignore.

Wagering online with ESPN bets would offer instant appeal to diehard sports fans all across the US. By the end of this year, more than half the 50 states will be offering legal sports betting in some form.

The biggest legal markets in the US, such as New Jersey, Pennsylvania, and Michigan generate the majority of their sports betting revenue through legal online wagers. Mobile sportsbook apps are driving industry growth.

Projecting into the near future, major markets such as New York and Florida are set to come online with legal sports betting through mobile betting apps.

Texas and California still need to work through the legislative process. However, legalization of sports betting in either state appears to be a matter of when, not if.

With that level of economic potential on the line, ESPN can no longer afford to sit it out on the sidelines.

ESPN along with its parent company, Disney, is looking to take advantage of the $150 billion that is now being legally wagered on sports in the US. An ESPN Sportsbook has the potential to become a game-changer.

First, this would impact the land-based retail sector with actual ESPN Sportsbooks tied to casino properties.

Next, the ESPN Sportsbook mobile betting app would have the ability to become a major player overnight. With an operating partner such as DraftKings or Caesars, the market reach would be instant.

On a smaller scale, FOX Sports has limited distribution through its FOX Bet mobile sportsbook app. As mentioned 888 and SI are working on their entry into the legal marketplace. Bally’s Corporation has partnered with Sinclair Broadcasting to help market and promote Bally Bet.

As the Worldwide Leader in Sports, ESPN could be the crown jewel in this treasure chest of media partners.

THE MOUSE DOESN’T MESS AROUND

Some industry insiders have suggested that ESPN should simply buy its own sports betting operator. However, that could be an issue with Walt Disney as the parent company.

A partnership with a major player such as DraftKings or Caesars may make more business sense. ESPN stands to take in quite a bit of money as a strategic partner. The Wall Street Journal has mentioned $3 billion as a target price for a multi-year deal.

In the past, Disney has been vocal against the expansion of gambling in its home state of Florida. However, sports betting has quickly become a mainstream activity among sports fans. Its popularity has exploded in states offering access to legal sportsbooks.

The financial upside for ESPN and whichever legal operator it partners with is huge. However, the move into the legal US sports betting industry will also have its fair share of critics.

A MATCH MADE IN HEAVEN?

Partnerships between companies that offer media coverage of sports and ones that book bets on sports have their fair share of skeptics. However, the legal US sports betting industry has gone out of its way to promote fair play.

The biggest plus to this industry is the fact that it is governed and regulated by individual states. This creates much tighter control as opposed to turning regulation over to the federal government.

That was the entire basis of the lawsuit that eventually opened the door for the expansion of legal sports betting in the US. In May of 2018, the US Supreme Court, as the highest court in the land, sided with a state’s individual right to govern and regulate sports betting within its borders.

Less than four years later, legal sports betting has turned into a major source of tax revenue for states offering this form of gaming. This is revenue that has helped fill the gap in both state and local government budgets.

As more and more states go live with legal sportsbooks, a major player such as an ESPN Sportsbook would be a positive addition to the team.

A huge initiative among the industry’s biggest players is responsible gaming practices. Millions of dollars are being directed towards programs to promote the responsible use of their gaming products.

Kevin Rogers

Kevin has been handicapping professionally since 2007 at VegasInsider before shifting to ScoresAndOdds. He focuses on MLB, NFL, college football, NBA, college basketball, and NHL and mainly uses trends, systems, and situations as his top handicapping angles. More from Kevin Rogers