Disney and ESPN initially inquired about taking interest in DraftKings in '15 as part of a $250M investmentGETTY IMAGES
Part of the deal for Disney to acquire 21st Century Fox' entertainment rights "included the stake" in DraftKings, meaning that stake is now owned by Disney "through one of its subsidiaries," according to Dustin Gouker of LEGALSPORTSREPORT.com. The DraftKings stake "did not move alongside" the Fox RSNs, which were sold to Sinclair earlier this month. This is an "interesting development in the sports betting world, and given the history of DraftKings and Disney." In '15, it was reported that Disney and ESPN were "taking interest in DraftKings" as part of a $250M investment proposal. Why that investment was "called off has been the source of speculation and rumors over the years." Meanwhile, the "revelation that Disney now holds interest in DraftKings is at odds" with what Chair & CEO Bob Iger said in February. Iger then said, "I don't see the Walt Disney Company, certainly in the near term, getting involved in the business of gambling, in effect, by facilitating gambling in any way" (LEGALSPORTSREPORT.com, 5/21). SPORT TECHIE's Jen Booton wrote whether Disney "ever actively does anything with its stake in DraftKings remains to be seen." Disney has "spent millions of dollars opposing gambling in the past and Iger has made clear the company's stance on facilitating gambling beyond just reporting the news and education the mainstream market" (SPORTTECHIE.com, 5/20).
SAY ONE THING, DO ANOTHER: In L.A., Tom Hoffarth wrote under the header, "ESPN And Other Media Entities Risk Their Credibility With Sports Betting Deals." In exchange for ESPN "building an actual branded studio inside the sports book" at the LINQ Hotel & Casino in Las Vegas, the net will get Caesars' "data and branding across all its programming." ESPN "surely did its due diligence" on the studio. But ultimately, it "becomes another sports media entity with a shortsighted willingness to risk trust and credibility" (L.A. TIMES, 5/20).
