Could Sports Gambling Save ESPN?
As Disney continues to look for ways to make ESPN profitable, the specter of sports gambling looms in the distance.
While other sports media entities such as Fox Sports, NBC Sports and Barstool Sports have struck deals with online sportsbooks, Disney and ESPN have largely stayed out of the fray.
That is not to say, however, that ESPN hasn’t adapted to the times. Sports gambling shows now appear daily on the ESPN family of networks, and odds and spreads now appear on the channels’ bottom scroll.
Today, at the Morgan Stanley TMT Conference, Bob Iger addressed the possibility of ESPN getting more involved in gambling.
Photo: Variety (Rex/Shutterstock)
“There are opportunities, not for us to go into the betting business, but we’ve talked about this and it’s something that my predecessor was very interested in to incorporate elements. We’re already doing it, betting. Fox is doing it, too. I know Lachlan was here earlier, into the sports programming,” Iger said.
Photo: Getty Images
Can Disney’s Image Withstand A Gambling Partnership?
The question facing CEO Bob Iger is not about the profitability of sports gambling, it’s about the company’s family-friendly image.
Can Disney allow ESPN to become further entangled with sportsbooks while maintaining its public image?
Photo: The Walt Disney Company
During his question and answer session today, Bob Iger indicated that it was just a question of time until ESPN was more involved.
“I think that’s important for consumers, particularly young consumers. I mentioned earlier in another meeting, I have two sons who are 24 and 20. And it’s not just about fantasy sports, but they’re interested in it. And I prefer to wait as long as possible. But when I think about them — but I think it’s inevitable that there’ll be basically a seamlessness between sports programming and sports betting.”
Photo: Getty
A New Frontier
Ever since online gambling has been legalized in the United States, the sector has exploded, especially among young males.
New estimates by Grand View Research indicate that the market size for global sports betting will reach $140.26 billion by 2028.
Image Credit: ESPN
With an iconic sports channel like ESPN, Disney would be foolish not to enter the market in some capacity.
Bob Chapek Pushed For the Idea
Interestingly, it was former Disney CEO Bob Chapek who pushed for the company to enter into the sports gambling sphere.
During the company’s fourth quarter earnings call, Chapek stated that Disney should seriously consider getting into gambling in a bigger way, and “ESPN is a perfect platform for this.”
Photo: CNBC
While Disney will obviously not be selecting bets themselves, partnering with another sportsbook would go a long way in making ESPN profitable again.
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