The Stars Group (FOX Bet in New Jersey) and FOX Sports announced a plans launch a new sports betting outlet FOX Bet. This will be a first-of-its-kind national media & sports wagering partnership in the United States.
The Score, another sports media company, will launch a sports betting app of its own in New Jersey later this year.
The Stars Group and FOX Sports expect to launch two different products in the Fall of 2019 under the FOX Bet umbrella. One product will be a nationwide free-to-play game. This free game will award cash prizes to players who correctly predict the outcome of sports games.
The second product will be named Fox Bet. This app will work in states that offer legal regulated sports betting. Users will be able to place real money wagers on the outcome of a wide range of sporting events in accordance with the applicable laws and regulations of each state.
Expect to see Fox Sports integrate Fox Bet into some of their sports coverage. The first place this alliance should appear is on Fox Sports 1’s Lock It In daily sports betting show.
Fox buys a stake in BetStars
The Fox corporation will acquire 14,352,331 shares in The Stars Group. This represents 4.99% of The Stars Group’s issued shares of stock. Fox is paying approximately $236 million for the less than 5% state in The Stars Group.
FOX Sports will grant to The Stars Group an exclusive license for the use of certain FOX Sports trademarks for a range of games and online sports wagering. The license will also work with certain exclusive advertising and editorial integration rights on certain FOX Sports broadcast media and digital assets.
According to Sports Business Daily, Fox holds the right to take a 50% equity stake in the company within the next 10 years.
Rafi Ashkenazi, Chief Executive Officer of The Stars Group said:
“We believe this strategic partnership uniquely positions us to build a leading betting business in the U.S., which represents one of the most exciting long-term growth opportunities for our company. Leveraging our proven media partnership strategy with Sky Sports in the UK, we are excited to partner with FOX Sports to integrate wagering into sports media and drive customer acquisition and retention in the U.S.”
Fox Bet is coming this fall … somewhere
As of the writing of this article, the only states with legal online and mobile sports wagering are New Jersey and Nevada. BetStars is not operating in Nevada yet but New Jersey residents should be able to use Fox Bet when it launches this fall.
The Stars Group and Eldorado Resorts have a partnership that could give Fox Bet access to even more states. Eldorado operates Mountaineer Casino in West Virginia. Although mobile sports wagering is legal in the state, Eldorado and BetStars are not active in the market. Eldorado currently has 26 casinos in 13 states.
This is a developing story. For more in-depth analysis of the deal, check out LegalSportsReport.com.