Disney CEO Chapek Details ESPN Plans For Sports Betting

Bob Chapek, CEO of Walt Disney (NYSE: DIS), restated his opinion that sports wagering has a place in ESPN’s future, but emphasized that ESPN will not be a part of the bookmaking process.

At the 2019 D23 Expo, Disney CEO Bob Chapek expressed the company’s intention to pursue sports betting as part of ESPN’s future. The remarks were made yesterday during the Goldman Sachs Communacopia + Technology Conference in response to a question from equity analyst Brett Feldman. Chapek believes that the exposure of sports betting is not damaging to the Disney brand and will bring a positive influence on ESPN’s. He further elucidated that an ESPN-branded link out to a sports betting site would be the most likely application and would have no impact on Disney brand equity.

Good timing for Chapek’s comments, as last year it was reported that ESPN was searching for a multi-year licensing agreement worth $3 billion with a sportsbook operator. It was said that ESPN held talks with Caesars Entertainment (NASDAQ:CZR) and DraftKings (NASDAQ:DKNG), yet nothing came of it. Chapek did not elaborate on how such a link-related effort could come to fruition.

Good Timing for Chapek Comments

It is possible that the timing of Bob Chapek’s comments on ESPN staying within The Walt Disney Company was more than a mere coincidence. This is due to the fact that a mere two days prior, Daniel Loeb of activist fund Third Point had backed away from plans to push for Disney to spin off the sports network due to his realization of ESPN’s value to the corporation. Chapek highlighted this at the Goldman Sachs Conference by stating the numerous advantages that live sports bring in, such as advertising, viewership, and fandom.

Just last month, Chapek informed Disney investors that an important announcement related to sports betting may soon be made, predicting that ESPN will make an incredible splash with it. And we believe this to be very important.

Waiting on ESPN Sports Betting Splash

ESPN is beginning to show more sports betting exposure, with its alliances with Caesars Sportsbook and DraftKings. It is creating content that will likely be attractive to younger viewers, who seem to have a propensity for wagering. Though not linked to any sportsbook business, it is unknown as to when and if this will change. There have been speculations that Disney might be on the hunt for a smaller sportsbook company, something that it has the funds to do. Nevertheless, Bob Chapek did not make any remarks regarding potential deals with a Goldman Sachs conference.