ESPN finally enters betting world with new sportsbook

It was a matter of time before ESPN itself entered the legal sports betting business, but the current driving forces come at a seemingly precarious time for the broadcaster. Pressured by both shareholders and long-speculated economic uncertainty, Disney slashed jobs across all of its properties, including rounds of layoffs and non-renewal of some contracts at ESPN. Some of that pressure came as a result of declining traditional cable subscriptions that have dramatically cut revenues for a network that annually ranks as the costliest channel in all of television. Cord cutting continues to threaten those revenues, yet standalone streaming services such as ESPN+ have yet to make up for any shortfall.

An ESPN-branded sportsbook could have its advantages in a space already dominated by pure gaming companies. Despite the financial concerns on the television side, ESPN remains a central asset for Disney, and if there's a hint of success of ESPN BET, it's hard not to imagine the parent company making even bigger investments in it. ESPN has proven successful with its fantasy sports products over the years, and that could potentially provide a blueprint on how ESPN BET could be woven throughout all of the network's platforms.

In the press release, ESPN chairman Jimmy Pitaro noted the likely synergy between ESPN BET and the rest of ESPN. “Our primary focus is always to serve sports fans and we know they want both betting content and the ability to place bets with less friction from within our products," he said.

Not long after the ESPN BET announcement came news that Disney just completed its upfronts, stating that they were "in line" with 2022, according to Adweek. There was even more of a focus on the upfronts, where advertisers purchase commercial space in advance of the next television season, due to the ongoing strikes by Hollywood's writers and actors that put a halt to production of shows and films. Live sports are already the linchpin holding all of the television business together, and the launch of ESPN BET may also serve as a way for Disney to somewhat make up for revenues lost from the lack of scripted shows.