Disney Now Owns Part of DraftKings, Enters the Gambling Market

22.05.2019, 12:14

The Walt Disney company is now another major force in the gambling world. However, their entrance can be purely coincidental, as the company received stock of DraftKings sportsbook after the infamous 21st Century Fox acquisition in a $71.3b deal.

This may come as a surprise, as Disney was previously opposed to gambling. It was rumored that Disney lobbied Florida lawmakers to keep gambling out of the state. Florida is home to the Walt Disney World, a wholesome family destination. Naturally, Micky wouldn’t want any resemblance of gambling in his family-friendly environment.

Furthermore, Disney CEO Bob Iger has recently corroborated such image in front of investors. “I don’t see The Walt Disney Company, […] getting involved in the business of gambling, in effect, by facilitating gambling in any way,” he said.

As mentioned, Disney got a part of DraftKings as a partial trophy from Fox. The latter company has previously invested $160 million in the sportsbook. As a result, DraftKings is now one of the largest sportsbooks in the US.

Since that asset can be considered a “residue” from a deal, one question occurs. Will Disney try to sell their stock? After all, it would look good for Iger if he stood by his words. Nevertheless, this is unlikely, seeing that Disney has almost invested $250 million in DraftKings in 2015. Now that they own Fox, their former investment interest is now a good additional revenue source.

Another interesting detail is that Disney also owns ESPN. One of the largest sports networks might partner with one of the largest bookmakers. This match made in heaven is especially obvious under a Disney umbrella. Only time will tell, but the united front might be massive, thanks to the expanding gambling legalization in the US.

Related posts: