The Walt Disney Company is announcing its entry into the betting business, making a real revolution with a 180° change in the decades-old line. All of this will happen through ESPN, a television giant controlled by Disney.
Disney is also getting into the betting business
From a symbolic point of view, it seems like a decadent myth. Quite simply, it is a sign of changing times, when the decisions of big companies reflect some profound changes in society. What are we talking about? Della Disney, a brand that has been an icon of family fun for generations, has just announced its own brand. entry into sports betting business.
The announcement didn’t quite surprise the most careful observers, given that Bob Chapek, CEO of The Walt Disney Company, indicated in the presentation of its 2021 financial statements that the stakes could be a very interesting opportunity for the company. He said and done: A little over a year after this announcement, ESPN has signed a deal with Penn Entertainment. giving birth to the new ESPN Bet brand.
Established in 1979, ESPN, the historic sports event broadcasting network, has been part of the Disney galaxy for many years, controlling it with an 80% stake. Deal includes a payment from Penn to ESPNs 1.5 billion dollarsplus nearly 500 million as collateral to convert Penn’s existing brand, Barstool Sportsbook, into ESPN Bet.
What should we expect from ESPN Bet?
Disney’s move must be read first and foremost from an American commercial standpoint. More than 5 years after the Supreme Court decision Legalization of sports betting in the USA, the main focus is the US market. Indeed, today Betting is legal in 34 US states Out of 50 and Penn has licensed 16 of them.
It’s no coincidence that the rebranding from Barstool Sportsbook to ESPN Bet is scheduled for next fall, precisely in conjunction with the start of the new NFL Football season. The major US professional leagues are a crazy driver for the industry, but they’re not the only reason. movement that already has positive effects on the stock marketfor both Penn and ESPN.
Another argument about this decision is Interest in the Latin American market. ESPN is very strong in Latin America through the ESPN Deportes brand created in 2004. Given that Brazil has legalized gambling and will present itself as a market of great international interest, it is reasonable to expect the new Disney brand to try to capitalize on this to position itself well.