ESPN may be looking to partner with one of the country’s largest sports betting companies—giving a needed boost to both brands.
Key Details
- DraftKings appears to be close to signing a deal with ESPN to become its official sports betting partner.
- “The nation’s number two sportsbook and ESPN are on the cusp of signing an exclusive partnership,” says The Action Network.
- “The deal would feature integrated betting odds with broadcasts and involve a sportsbook rebranding itself with the ESPN name,” says Barron’s.
- “We have a great, long-standing relationship with ESPN. However, we speak to a variety of companies on a regular basis and don’t comment on the specifics of those conversations,” says DraftKings.
- DraftKings’ sluggish stock has risen 6.6% since the report.
Why it’s important
While the deal isn’t officially cemented yet, it would be an incredibly stabilizing show of confidence for the company that has struggled to keep its stock price stable in recent months.
Despite being the second largest sports betting company, it has struggled to make a steady profit since it was founded in 2012.
“The move is a boost for DraftKings, whose shares have slumped about 40% this year. Among analyst ratings collected by FactSet, 10 rate the shares a Buy while eight rate it a Hold,” says Barron’s.
“In May, it raised its estimate for revenue this year to $2.03 billion and said that faster consumer-price inflation wasn’t denting demand.”
Backing up a bit
As we previously reported, DraftKings Sports saw a stock boost in early September, receiving an 11.9% bump in stock prices as the new NFL season began.
Sports betting is a billion-dollar industry in the United States which was valued at $76.75 billion in 2021 and is expected to grow to $83.65 this year. Legalized sports betting is permitted in 30 states and the District of Columbia.
“The global sports betting market is expected to grow at a compound annual growth rate of 10.2% from 2022 to 2030 to reach $182.12 billion by 2030,” says Grand View Research.