Media Companies Keep Turning to Gambling. It’s Not What You Think

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Gambling is often full of risk, but it may also be the surest bet stressed executives in the frenzied media business these days can make. Disney earlier this month became the latest of the traditio…

stands to receive $2 billion in cash and warrants over10 years from the gambling purveyor. In return, ESPN will help market a new sportsbook, ESPN Bet, by incorporating the name into its shows and content.and fantasy, says about betting. ESPN runs a show called “The Daily Wager” that is devoted to odds-making, but he sees new opportunities to host discussions about betting during pre-game shows and during game play, all with ESPN Bet getting a shout-out.

Notably, neither ESPN nor Disney will actually take a bet on any of their media platforms as a result of the arrangement. That may be wise. It’s hard to see the backer of premium family properties like “Lilo & Stitch” and “Toy Story” getting heavily involved in the worlds of casinos and wagering.

Disney is only making a small wager, says John Harrison, who leads EY’s media and entertainment practice in the Americas. Breaking into the online sports betting market “would require significant capital to build out technology and compliance infrastructure and fund massive advertising and promotion programs to attract and retain bettors,” he says.

Not long ago, sports betting was seen as a path to the future for big media brands. Not only were consumers eager to take part in legalized betting, but networks. After a few years of contending with betting giants like DraftKings and FanDuel, however, there’s a growing sense betting may not be the panacea for which many had hoped. The business requiresindustry consultant and a former Fox Sports executive. “Gamblers are pretty sophisticated. TheyYes, there is money to be made. NBCUniversal struck a five-year deal with PointsBet of Australia in 2020.

 

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