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Disney gambles on paid online gaming site

5/12/2001

Disney and Jay Walker invest in Skillgames

Following hot on the heels of companies like Sprint PCS's foray into the world of gambling is Disney. The company, whose name is synonymous with children?s entertainment, is funding a paid, online gaming site ? Skillgames ? together with Priceline.com founder Jay Walker.

Although Disney spokeswoman Susan Murdy said the company had a minority investment in Skillgames, it is allowing Skillgames to use some of its brand names, including ESPN and ABC. Disney also denies that the games fall under the category of online gambling, since they are based on skill.

Both Disney and Skillgames are vague about the specific details of their business relationship and what games will be on offer, preferring to keep the information private until the site launch in mid-June. However, a Skillgames representative did reveal that the cash prizes would range from US$5 to US$500, with the jackpot prize standing at US$1 million.

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