As ESPN closed one chapter on its sports betting journey last week, the network opened a new one with the start of its comprehensive partnership with DraftKings.
The companies began a multi-year partnership that designates DraftKings as the official sportsbook and odds provider of the network. The partnership went into effect on the same day that Penn Entertainment rebranded its online sportsbook as theScore Bet. Known colloquially as “The Worldwide Leader In Sports”, the network is entering a new phase after mutually parting ways with Penn in a move that shuttered the ESPN BET brand after the sides terminated a 10-year partnership deal less than two years into the arrangement.
Despite the upheaval, ESPN executive Mike Morrison is encouraged by joining forces with DraftKings, one of the nation’s largest sportsbooks. The partnership brings together two of the most prominent companies in sports, each with estimated valuations in excess of $15 billion. As part of the deal, DraftKings will integrate a host of products into ESPN’s ecosystem, including its sportsbook, daily fantasy and Pick6 offerings.
“This is absolutely the right deal, with the right partner at the right time,” Morrison told iGB. “We are exceptionally happy where we landed strategically and the alignment with DraftKings.” Morrison, ESPN’s vice president of business development and innovation, heads the company’s sports betting and fantasy sports division.
ESPN sports betting emphasis on personalisation
ESPN began the partnership with DraftKings just months after the network’s closely watched rollout of a new direct-to-consumer platform. The launch of the streaming service coincided with a series of enhanced upgrades to the ESPN app, including advanced betting data, integrated stats and a personalised version of the network’s flagship programme, dubbed “SportsCenter For You”, that allows users to tailor highlights to their preferences.
A betting tab within ESPN’s app is now powered by DraftKings odds and content, according to an ESPN statement. Ahead of the football season, ESPN introduced an option that gave fans the ability to link their fantasy and betting selections on a single account. ESPN will complete a full rollout of the DraftKings partnership by 2026, the network announced.
Through the new DTC platform, ESPN offered users a connected TV experience enabling them to track their bets on the screen. While Morrison did not offer much specificity about some of the innovations planned for next year, he indicated that such enhancements will be part of the “road map” moving forward.
Moreover, Morrison said the partnership allows the companies to complement each other with fast-moving breaking news. He points to the Los Angeles Lakers’ acquisition of Luka Doncic in February as an example of how certain betting content can enhance ESPN’s editorial coverage. Within hours of the trade, the Lakers’ championship odds improved dramatically on futures markets.
By commingling gambling updates with the network’s broader news strategy, ESPN can “service bettors and fans” simultaneously, in Morrison’s view. Now, with a plethora of integrations from DraftKings, ESPN can execute the strategy in a “more frictionless way”, he said.
Lingering questions about new DraftKings deal
This week, ESPN moved quickly to apply some of the integrations. ESPN’s morning show, “Get Up”, added DraftKings Sportsbook as the presenting sponsor. In the afternoons, the sportsbook is also the sponsor for “NBA Today”, ESPN’s daily news show on the league. However, the network temporarily shelved its daily sports betting programme, “ESPN Bet Live”, as it evaluates the changes with its sports betting content.
According to an ESPN spokesman, the network is considering the next steps for the programme that has aired since 2019. Prior to the Penn deal, the studio show aired from Las Vegas under the title “ESPN Daily Wager”. It also is unclear if ESPN will integrate any content from DraftKings’ proposed predictions market into its coverage.
Shortly after the announcement of the partnership, DraftKings CEO Jason Robins spent a day on the Bristol campus with ESPN brass. There, Robins impressed Morrison with his knowledge of the industry and ability to adapt to major changes across the market.
Terms of the ESPN-DraftKings deal have not been disclosed. DraftKings, however, has about $1.3 billion of expected contractual obligations over the next five years with three media counterparties. In discussing marketing deals with ESPN and NBCUniversal, Robins said the partnerships will result in deeper brand affinity and broader reach.
Despite losing the Sunday night baseball package from MLB, ESPN still maintains broadcast deals with all four of the top North American pro sports leagues. With numerous synergies to glean from the partnership, Morrison views DraftKings as a natural fit.
“This partnership serves as a foundation to do more innovation as the market challenges us to do that,” Morrison said. “We’ve never been better prepared to adjust and respond to the demands of fans and the expectations that are set out in front of us.”
Matt Rybaltowski
Matt is primarily responsible for long-form feature coverage on complex sports betting scandals. He also provides coverage on finance, M&A and other technological developments.
Original article: https://igamingbusiness.com/sports-betting/espn-sports-betting-morrison-draftkings-deal/
