ShareThe online sports betting industry has seen many new partnerships arise between major players in recent years. One such deal is the new tie-up between Penn Entertainment and Disney's ESPN, which has been described as the "white whale" of sports betting deals.
The details of the partnership, including the financial investment committed by Penn and the benefits of combining Penn's operational experience with ESPN's unparalleled reach promise another big hitter arriving into the industry.
Penn and Disney Partner Up
Penn Entertainment and Disney's ESPN have formed a long-term exclusive strategic alliance to make a hard-hitting entrance into the US online sports betting market.This partnership brings together the operational experience of Penn and the unparalleled reach of ESPN in the sports industry, promising big things.
As part of the deal, Penn has committed a significant financial investment in ESPN over a decade. This includes a cash payment of $1.5 billion to ESPN and granting ESPN about $500 million of non-voting shares in Penn. The partnership aims to create a new sports betting experience for fans, with the rebranding of Penn's sportsbook property to ESPN Bet.
The merger of Penn's existing database of 27 million gaming customers with the front-facing brand of ESPN is a key aspect of the partnership. This collaboration allows for the utilisation of ESPN's well-documented lean into gambling content and its wide audience reach.
Game-Changer
This partnership between Penn and Disney's ESPN is considered a game-changer in the online sports betting industry. By combining Penn's operational expertise with ESPN's extensive reach and brand recognition, the partnership has the potential to reshape the sports betting landscape beyond recognition.This deal has been two years in the making after Disney considered different candidates before eventually deciding that Penn had been “very aggressive” and made the best offer “by far” to develop an ESPN-branded sportsbook.
Disney CEO Bob Iger said: “[This deal] will offer a compelling new experience for sports fans that will enhance consumer engagement. We’re excited to offer this to the many fans who have long been asking for it. We believe there’s an opportunity to significantly grow engagement across ESPN consumers, particularly young consumers. And why Penn? Because Penn stepped up in a very aggressive way and made an offer to us that was better than any of the competitive offers — by far.”
It has also been pointed out that Disney has made a smart move by partnering with an established operator to avoid damaging its family-friendly reputation by getting involved in the gambling business.
