Disney Gets Into Gambling: ESPN Bet Launched in the US
ESPN Bet, a sports-gambling product branded with the name of the Disney-owned sports tv channel, launched its website in the US. Penn Entertainment, which owns the service, signed a $1.5 billion (NZ$ 2,5b) deal with ESPN for the branding rights. Under the deal, Penn will operate the platform whilst ESPN promotes the app across its online and broadcast channels. ESPN Bet is now available in seventeen of the 27 states where gambling is legal in the United States.
The website of ESPN Bet was launched on November 14, 2023. The betting service is a partnership between Penn Entertainment and Disney’s subsidiary, ESPN. The gambling site will have to compete with the American gambling giants FanDuel and DraftKings, which together control approximately 80% of the sports betting market in the US.
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Disney’s Debut in Gambling
The website of the new online bookmaker is a collaboration between Penn Entertainment and ESPN, which is owned by Disney since 1996. The partnership means Disney has made its first move to the online gambling market. The companies joining forces is a strategic move for both parties. ESPN says that it wants to generate additional revenue by attracting sports bettors, whilst Penn Entertainment states that it was looking for a new partner to launch a sports betting site, according to the American news source CBS News.
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Penn Entertainment Not New To Sports Betting
Penn Entertainment had previously partnered with Barstool to launch a sportsbook. However, this collaboration never turned out to be a successful move. In early 2023, Penn Entertainment sold Barstool back to its founder Dave Portnoy for $500 million (NZ$ 832,72m). This paved the way for a collaboration between Penn Entertainment and ESPN. The agreement between ESPN and Penn Entertainment was officially closed in August 2023. The deal totals $1.5 billion (NZ$ 2,5b) to exploit ESPN Bet’s official trademark rights. The initial deal will last ten years, with a potential renewal of another ten years.
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Debate About Logo
ESPN Bet’s new logo is said to resemble the logo of BroThrow, a peer-to-peer platform for sports betting. Both companies use the same colours, whilst the same is true for the letter “B”. BroThrow has been using the logo for over two years, which is why there might be legal consequences. BroThrow is stated to only have a patent for the brand name, not for the logo. The company has not yet stated whether it will take legal action.
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ESPN Bet in New Zealand?
It is not yet known whether ESPN Bet will be launched in other countries, such as New Zealand. ESPN is available as a pay tv channel in our country, where it has the rights to broadcast sports like football, horse racing, eSports, and basketball. ESPN Bet currently only offers sports betting and does not offer an online casino. New Zealanders can make their sports bets at Tab NZ and offshore bookmakers with an international licence as offshore operators are not banned from offering their products in New Zealand.
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