Walt Disney Set To Invest $250 Million In DraftKings
Last week we reported on the rumors of Walt Disney set to invest in daily fantasy sport betting giant DraftKings. This has now been confirmed according to the Wall Street Journal by “people familiar with the matter.” The sum talked about is $250 million which would value the Boston based company at $900 million.
For DraftKings this is a major coup and potential game changer in their fierce rivalry with FanDuel. In terms of the bigger picture Disney owns ESPN who are the largest sports network on the planet. In return for the $250 million investment from Disney, DraftKings has reportedly committed to spending over $500 million on the various platforms of ESPN in advertising in coming years.
The likes of DraftKings and FanDuel have transformed the fantasy sports betting market as they not only offer daily competitions but also hand out millions of dollars in real cash prizes. Due to the fact they base their competitions on skill and not on luck exclusively, both DraftKings and FanDuel are permitted to operate in most U.S. states as they don’t fall under the gambling restrictions.
Besides being a major coup for DraftKings, their competition FanDuel will now have to settle for non-premium advertising positions on ESPN which will now be reserved for DraftKings. Both ESPN and DraftKings declined to comment on the report.