Disney's ESPN nears large partnership deal with DraftKings

Walt Disney Co's  ESPN is nearing a large new partnership deal with sports-betting firm DraftKings, Bloomberg News reported on Thursday, citing people familiar with the matter.

The potential deal will allow the sports broadcaster to capitalize on the growing wave of legalized sports betting, according to the report, which did not give details of the financials or structure of the partnership. Last month, Disney CEO Bob Chapek said on CNBC that while ESPN would never take bets, they could give sports fans “the ability to have a frictionless sports betting potential with not having to have four screens in front of you.”

ESPN has already invested heavily in sports gambling, though it has steered clear of taking actual bets. The broadcaster has betting-related shows such as Daily Wager and marketing deals with DraftKings and Caesars Entertainment Inc. where links to the sportsbooks are integrated into ESPN’s website. Disney also acquired a stake in DraftKings as part of its acquisition of Fox’s entertainment assets in 2019.

ESPN has been looking to license its brand to major sports-betting companies for at least $3 billion over several years to take advantage of the booming online betting industry, the Wall Street Journal had reported in August.