US network looking to licence brand in multi-year partnership with gambling firms.

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US broadcaster ESPN is in talks with gambling giants Caesars Entertainment and DraftKings to licence its brand in a multi-year deal worth US$3 billion, according to the Wall Street Journal (WSJ).

The newspaper reports that the network has held discussions with the owners of the two betting firms, for which ESPN has existing marketing partnerships in place.

Caesars and DraftKings are already forging ahead with establishing their own brands in the burgeoning US sports betting market. In March, DraftKings expanded its content capabilities when it bought sports betting broadcast company Vegas Sports Information Network (VSiN). As well as its own 24/7 stream, VSiNs offering is accessible through the likes of Comcast Xfinity, Sling TV, FuboTV, MSG Networks and Marquee Sports Network.

Caesars, meanwhile, partnered with ESPN in 2019 to develop sports betting programming.

The WSJ reports that a deal with ESPN could include an exclusive marketing commitment requiring the betting firms to invest a specific amount of money for advertising on ESPNs platforms.

Prior to this, ESPNs notable moves in the sports betting space have included the launch of a dedicated sports wagering YouTube channel, which features segments from the broadcasters linear sports betting news show Daily Wager. In April, ESPN offered its first betting-focused broadcast for a National Basketball Association (NBA) game.

The WSJ also reported that the networks executives want to keep ESPN from being directly involved in gambling deals and betting transactions.

ESPNs latest sports betting play comes as more states legalise wagering on sports. The market is set to generate revenue of around US$4 billion this year, according to gambling research firm Eilers & Krejcik Gaming.

Last week, US online gaming outlet PlayUSA said that punters could place more than US$20 billion alone in bets on the National Football League (NFL) and college football during the 2021 season. The wagers, excluding parlay bets, could produce as much asUS$1.5 billionin revenue for sportsbooks across the US.

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Report: ESPN eyes US$3bn sports betting deal with Caesars and DraftKings - SportsPro Media