The Wall Street Journal reported that ESPN is dickering with licensing its brand to sports betting operators for at least $3 billion over several years.
ESPN has talked with operators, including Caesars and DraftKings, which have existing contracts with the broadcast firm, according to Sports Handle. Part of the plan could be to rename one of the sportsbooks as such as ESPN Sportsbook by DraftKings or ESPN’s Caesars Sportsbook.
Any deal may include an exclusive marketing agreement requiring an ad commitment. In the end, of course, the operators could just say no.
It is perfectly reasonable that Disney-owned ESPN would look into monetizing online sports betting while reducing operational and regulatory costs, said Lloyd Danzig, founder and managing partner of Sharp Alpha Advisors.
Another stipulation could require the sportsbook to commit a fixed amount in advertising on ESPN’s platforms.
But sportsbooks may not be motivated to take the deal, said Chris Krafcik, an analyst with Eilers & Krejcik Gaming. Krafcik said it’s unlikely the sportsbook can turn a profit. At a 7 percent hold, the sportsbook must handle more than $42 billion to break even.
An entry by ESPN parent, Disney, into the sports betting marketplace also carries problem gaming concerns. A sports betting kiosk next to Space Mountain may tempt a 50-something father of four during a family vacation to Orlando.
In related news, Hard Rock Casino Northern Indiana has signed a deal with ESPN 1000 as a naming rights sponsor for the Chicago White Sox Radio Network. The deal runs from this September to the end of the 2023 season. Hard Rock will be included in every White Sox game from spring training through post-season, according to Barrett Sports Media.
“Partnering with the Chicago White Sox late last year was monumental for ESPN Chicago! To partner with Hard Rock Casino Northern Indiana to present the naming rights of the White Sox Network to White Sox fans is remarkable,” ESPN 1000 Market Manager Mike Thomas said in a press release.
