It's official: Disney is going all-in on sports betting with the launch of ESPN Bet in November

According to the WALL STREET JOURNAL, Disney is “going all-in with sports betting” after striking a XNUMX-year deal with Penn Entertainment to “bring gambling to the sports network Disney's ESPN." The idea of ​​gambling “under the same roof as Disney” has “irritated some company executives and employees who believe it will damage the brand.” Last year, at least one large investor warned Disney that it “may have to sell some of its Disney stake if the company embraces gambling.” But for ESPN president Jimmy Pitaro and Disney CEO Bob Iger, “the chance to engage a younger male audience” and the money were “ultimately too good an opportunity to pass up.” Penn will pay Disney $1,5 billion in cash, while ESPN will receive warrants worth about $500 million to buy shares of the gambling company. Penn will “manage the app” and Disney will “help market it.” ESPN and Penn have the option to "leave the partnership within three years" if the venture "has not achieved a minimum market share target." Penn Entertainment CEO Jay Snowden declined to reveal “the exact goal,” but said it was “about 10%.” Snowden added that ESPN sports programming “will not be included in the betting app when it launches in November” so as not to “slow down the betting experience.” Instead, the goal is for ESPN viewers and readers to "easily switch back and forth between sports and the betting app." Pitaro said “many on-air stars are eager to get involved with ESPN Bet” and the company “plans to announce an expanded lineup of talent to host and promote its gambling-related products and shows.” Pat McAfee said he will “promote ESPN Bet to his audience.” Meanwhile, ESPN is “also considering alternative broadcasts of betting-focused games”