Not long ago, sports betting was seen as a path to the future for big media brands. “By entering through a capital-light partnership anchored in licensing and other agreements, media companies secure exposure to incremental growth, customer engagement and cash flow.” Breaking into the online sports betting market “would require significant capital to build out technology and compliance infrastructure and fund massive advertising and promotion programs to attract and retain bettors,” says John Harrison, who leads EY’s media and entertainment practice in the Americas. What’s more, who has money to invest in a massive business venture amid a downturn in advertising revenue, TV viewers’ move to streaming and a weeks-long Hollywood labor strike?ĭisney is only making a small wager. It’s hard to see the backer of premium family properties like “Lilo & Stitch” and “Toy Story” getting heavily involved in the worlds of casinos and wagering. Notably, neither ESPN nor Disney will actually take a bet on any of their media platforms as a result of the arrangement.
