Fox has inked a deal with The Stars Group, operator of PokerStars and BetStars, to bring a real-money sports betting product to those states with legalized gaming.
“Digital sports wagering represents a growing market opportunity that allows us to diversify our revenue streams, connect directly with consumers and expand the reach of the FOX Sports brand,” said Fox Sports CEO Eric Shanks in a statement.
Fox will invest $236 million into The Stars Group and in exchange, receive roughly five percent equity with an option to acquire up to 50 percent of the company.
Fox will launch Fox Bet this fall, which will allow those in regulated markets to make real-money wagers. Additionally, those in illegal sports betting markets can take part in a free-to-play version of the app.
“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," said Stars CEO Rafi Ashkenazi. "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.”
The Stars Group has yet to comment on the fate of their current sports betting platform, BetStars, which is operating in New Jersey. The company also has a deal with the NBA.
This partnership marks the first time that a sports broadcast company has taken a major financial interest in sports gambling. Disney, which operates ABC and ESPN, had previously considered an investment in daily fantasy sports, but a statement from CEO Bob Iger in February killed any momentum the idea may have had.
