ESPN ends DraftKings advertising partnership

US news sources have reported that Walt Disney Company subsidiary ESPN has decided to end its advertising partnership with leading US daily fantasy sports operator DraftKings.

ESPN governance decided to end its multi-content advertising contract, valued at an estimated $250 million with the Boston based DFS operator following a contract review. The broadcaster did not offer any official explanation for ending the deal.

DraftKings and ESPN had brokered the original deal in July 2015, prior to the DFS industry’s legal predicaments in the US concerning state regulations, game play integrity and player protections.

At the time, DraftKings governance had declared the $250 million advertising deal to be a major coup in its battle with main competitor FanDuel to be the leading DFS operator.

Prior to the beginning of the 2015/16 NFL Season, Draftkings were reported to be the biggest advertiser in US marketing spending an estimated $24 million in promotional coverage.

Following an investigation of its operations by the FBI, ESPN governance had called for a suspension of its DraftKings advertising partnership.

The advertising partnership between the two companies will not enter its remaining months, following a review by ESPN.

US news sources have speculated that ESPN governance was concerned with the DFS industry’s ongoing regulatory battle within multiple states. The broadcaster and its parent company therefore wanted to distance itself from the ongoing industry polemic.

DraftKings have not issued an official response to the cancelation of the partnership.