DraftKings’ (NASDAQ: DKNG) widely awaited(p) deal with Walt Disney’s (NYSE: DIS) ESPN unit, which has yet to be confirmed past either party, could spur the gaming company’s international expansion efforts, according to manufacture analysts.
Rumors surfaced shoemaker's last week that the deuce companies are workings on an exclusive agreement. But inside information are to this dot scant, as neither position has confirmed the negotiations.
Last year, ESPN was rumored to follow seeking a $3 one thousand million licensing pact with a sportsbook operator, and it’s believed the network held talks on that subject with Caesars and DraftKings. Investors are likely hoping for something more essential than simply a licensing accord, and they likely don’t require to ascertain money-losing DraftKings shelling come out $3 billion.
Regarding markets out of doors the US, DraftKings, on with several domestic help rivals, operates in Ontario, Canada. The mass of US-based online sportsbook operators — Benjamin Rush Street Interactive (NYSE: RSI) being a notable exception — don’t currently control outdoors the US and Canada.
ESPN Deal Could Open India to DraftKings
In a take note to clients, Needham analyst Bernie McTernan said that as Republic of India moves toward regulating sports wagering, that’s a market where DraftKings could make water inroads if it reaches a pact with ESPN.
Given the current equity markets, we would follow surprised if DKNG would enactment on this opportunity on a standalone basis. However, attacking this opportunity with Disney+HotStar could live to a greater extent interesting precondition the leading position Disney+HotStar has in the market,” he wrote.
In India, Disney+Hotstar holds broadcast rights to cricket leagues, kabaddi, Wimbledon, English Premier League, and more, making it a potentially compelling partner for DraftKings, assuming the country regulates sports wagering.
The securities industry is potential attractive to a variety of gaming companies. There were an estimated $1.5 1000000000 in unregulated sports wagers placed in that location endure year. Republic of India is also the world’s second-largest rural area past universe and place to Asia’s third-largest economy.
DraftKings Needs ESPN Splash
Some market observers indicate that any DraftKings/ESPN organization needs to live most much more than content because content solo won’t go the needle for investors.
For DraftKings, that pressure level could follow amplified, as the stockpile plunged nearly 14% today. That put down came on news that the company and competitors are pulling dorsum on publicizing for Proposition 27 inward Calif. because it appears potential the initiative is heading for defeat.
On a somewhat related to note, BTIG analyst Charles Joseph Clark Lampen points come out inward a communication to clients today that DraftKings could leverage the ESPN brand to earn approach to unexampled states and spread out securities industry share on with the possibility of international expansion.
Neither DraftKings nor Walt Disney have exercise set a timeframe for in public announcing an agreement.
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