Disney is looking to expand more aggressively into sports betting, the company admitted during its Q4 2021 financial results report. The news was a U-turn in the family entertainment giant's position, which has avoided association with gambling for years and in the past few years has made a deliberate attempt to prevent Florida from passing legalisation of sports gambling.
While the association with gambling has been evident on ESPN television programmes, this is the first time Disney has openly outlined its plans to go beyond the Marvel and Star Wars franchises into the world of sports gambling.
Disney openly mentions sports betting as part of future plans
Commenting on the developments, Disney CEO Bob Chapek said that the company is now actively seeking to gain a larger share of the online sports betting market and Casumo Casino Online. To achieve this, Disney will look to collaborate with third parties and build constructive relationships, the executive added.
The growing number of ESPN subscribers is one factor that has prompted Disney to continue exploring the opportunity. Chapek acknowledged that sport offers a huge opportunity for engagement.
His comments make sense, especially now that FuboTV, a provider of streaming platforms and betting , has been able to successfully project its business model to encourage interaction with sports fans. Both streaming and betting have proven to be useful tools in this regard.
Disney also has a five-year rights agreement with the NFL and has acquired the rights to broadcast Monday Football games, making it an ideal place to capitalise on the rapid growth of sports.
Sports betting has played a crucial role in this market, with bookmakers bringing in a total of $5 billion in September alone, thanks to the rapid legalisation of the industry and numerous ongoing sports competitions. Disney also has a seven-year contract with the NFL to broadcast 75 league games nationally and exclusively through ESPN and Hulu's streaming offerings.
Reading testimonials is key to Disney's future
Right now, there's a lot going on in Disney's corner. ESPN's broadcast network may be up for sale to DraftKings and Caesars Entertainment, although there has been no official confirmation.
Back in August, The Wall Street Journal speculated that ESPN might sell its brand to betting operators. This report was never confirmed but the estimated price was quoted by the media as $3 billion. Front Office Sports has also speculated that Disney could potentially get rid of ESPN or rather spin it off at least once.
Social stigma fades as Disney prepares to gamble
This public flirtation with sports gambling is no accident. The company has done extensive research to suggest that gambling no longer has the negative connotations it did 10 or 20 years ago. Chapek explained that many people who were interested in remote gambling belonged to a younger generation, and they would eventually join the sports fan base.
This target group, says Chapek, already expects gambling to become part of their sports experience. "We were keen to get more involvement in gambling and ESPN is the perfect platform for that," admitted the CEO.
Naturally, Chapek and Disney were concerned about how the association with gambling would affect their family-focused window shop, but research showed that there was no reason to assume the brand could disappear.
"So to take advantage of this demographic opportunity plus the not insignificant revenue implications, we are very keen on this and are actively pursuing it," Chapek said at the end, confident in his company's ability to enter this new vertical and deliver on the results.
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