As the sports betting market is growing in the U.S., several media companies want to cash in on the action. In fact, several have already done so one way or another like Fox, Maxim Magazine and more. Disney Wants to Enter the Sports Betting Market which may or may not seem like a surprise to many.
This comes to a surprise to some since, 3 years ago, Disney was battling to restrict gambling in Florida. However, to others, it is but a logical step. This is because sports betting landscape is changing and Disney is a business in the entertainment industry which includes sports. The idea is for Disney to use the ESPN brand as its point-of-entry in the sports betting industry.
Publishing companies that were once at the top of the revenue chain for advertising is on the decline. Internet marketing companies are king as tech giants like Google and Facebook are getting a larger piece of advertising revenues.
As these companies are struggling, they are now seeing a new to way to generate revenue. Yes, they are looking at the sports betting industry and all that it entails.
Disney Wants to Enter the Sports Betting Market with ESPN
Ever since the Supreme Court got rid of the sports betting ban, the attitude on sports gambling is different. We are talking about $24 billion in wagers by Americans every year which translates to $2 billion gambling revenue. In the end, money talks and as long as it is legal, companies will support their bottom line.
In the case of Disney, it began after Bob Chapek became the new Disney CEO. Before he got the job, Disney held a more conservative stance. Today, things are moving and Disney Chapek believes that “sports betting is a very significant opportunity for the company”. However, he wants to make sure that people understand that “Disney isn’t entering betting, ESPN is entering betting”.
Disney will not be creating its own sports betting platform like Fox Bet. Instead, it is looking for a gaming partner to execute their plan in entering the sports betting market. One question does come to mind if Disney creates its own sportsbook. If a sportsbook is using ESPN’s branding in its app, what happens when ESPN has its own sportsbook? This could leave behind a lot of advertising dollars for Disney.
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