Walt Disney Co.’s ESPN is looking to license its brand to major sports betting companies for at least $3 billion in a multi-year contract, with the aim of taking advantage of the rapidly growing online gambling industry.

The sports media giant has been holding conversations with brands that own major sportsbook houses, including casino operator Caesars Entertainment Inc. and online gambling company DraftKings. ESPN has existing marketing partnerships with both companies.

The offer is an applicant’s right to use the ESPN name for branding purposes and potentially rename their sportsbook with the leading US sports TV network.

A deal could come with an exclusive marketing commitment that would require the sportsbook company to spend a certain amount of money on advertising on ESPN platforms.

There is no guarantee that ESPN will even close a deal this year. It remains to be seen whether game companies have the appetite to pay for the ESPN name when they are already investing to establish their existing brands.

A move that makes sense for ESPN

This kind of move certainly seems to make some sense from ESPN’s point of view. There is clearly money to be ‘made’ with gaming licensing agreements, and a licensing agreement comes with far fewer headaches than trying to launch a full-fledged gaming brand on your own.

This is especially true considering that most legal sports betting operates under state rules, and that there are already many operators in regions around the world.

However, at this time ESPN has been cautious about entering the sports betting industry.

It has established partnerships to integrate odds and betting-related content into some of its shows, and has podcasts and telecasts dedicated to the game, including “Daily Bets”. Executives said they want the company to avoid being directly involved in betting transactions.