Legalized sports betting continues to pick up steam as more and more states are attempting to push their way into this booming industry in 2019.
For the first time, a major media company is getting in on the action as Fox Sports prepares to launch an online sports betting platform of its own. The Fox Bet app is expected to officially launch in the fall of 2019 with help from gaming powerhouse The Stars Group, with which the media giant has just inked a partnership deal.
In exchange for roughly five percent equity in The Stars Group, Fox is investing $236 million as part of the partnership to create the Fox Bet app, which resulted in an immediate 10 percent market rise for the group following the announcement. Fox Sports will also have the right to acquire up to half of the U.S. business done by The Stars Group within the first decade of the deal.
The plan is to launch two Fox-branded sports betting products, one free-to-play betting option and a real-money platform in the mold of existing brands like FanDuel Sportsbook and DraftKings Sportsbook. Fox Sports CEO Eric Shanks referred to the opportunities that come along with launching a sports betting product and mentioned the chance to diversify the company’s revenue stream. Shanks also knows many Fox Sports consumers are already involved in sports betting and thinks this partnership could set the benchmark for how sports is consumed in America moving forward.
Fox Bet, The Stars Group Combine To Launch New Sports Betting Platform
Huge media companies with sports broadcast rights like Disney, Comcast have chosen to remain on the sidelines when it comes to legal sports betting, but Shanks felt this was the right time to make a move. The new Fox Bet app may take the place of the BetStars NJ brand, which would then all but disappear upon The Stars Group and Fox Sports' launch.
The Stars Group is a huge Canada-based gaming app giant that owns Full Tilt Poker and PokerStars, among other huge gaming brands. It currently has access to the market via licensing in 13 U.S. states and is in the process of acquiring more licenses, despite sports betting being legal in just a handful of states at the moment.
When it comes to ever-growing NJ online sports betting and the newer PA sports betting industry, The Stars Group is heavily involved. They are affiliated with Resorts Casino in the Garden State and Mount Airy Casino in the Keystone State, both of which have been profitable ventures.
The Fox Bet app partnership allows The Stars Group to brand themselves with certain trademarks from Fox Sports in a range of ways across their online sports betting landscape as part of a 25-year commercial license. It also accrued rights for some advertising and editorial Fox Sports broadcast assets.