The will mark the first we’ve seen a completely integrated media partnership for sports betting in the United States. Initially, FOX will receive just less than a 5% stake in The Stars Group but will have an option to buy half the company’s equity at the 10-year mark.
You can signup for the BetStars app which will eventually become FOX Bet here.
For FOX, the deal makes sense. It’s a monster opportunity to enter the legal sports betting space, a thriving market that’s expected to skyrocket in coming years, while The Stars Group receives a significant jolt brought by the household brand name recognition of FOX that instantly puts some shine on what had previously been a secondary product in the initial stages of U.S. legal mobile sports betting.
The implications of this partnership can’t be describe as anything less than substantial, with FOX Sports’ massive reach and recognizable brand on the surface of a sports wagering enterprise, it’s expected that FOX Bet will immediately become an industry giant upon its launch later this year. That’s the power of having:
- multiple sports networks
- a radio presence
- major sports television rights
- a substantial social media reach
This hypothesis isn’t unfounded, with Europe’s Sky Bet, broadcast and sports wagering merger, having had tremendous success.
At the most basic of level, the emulsification of a sports television network and sports betting enterprise means seamless and effortless built-in advertising opportunities, the increase in streaming and television betting content, and the eventual organic integration of sports wagering into live television broadcasts. That last part is particularly big. Brands such as DraftKings and FanDuel are still major players that will continue to compete in this rapidly expanding space, but FOX Bet may quickly jump ahead. Why show up to a party as an outsider when you can just throw a bigger and better party yourself?
That said, expect similar union between established media giants and sports betting operators to form in the coming months as both sides look to maximize returns in a rapidly evolving industry, one that’s true ceiling remains unknown.
For now, what does this mean for New Jersey legal sports betting? It’s expected that the current app will remain largely the same, both in terms of appearance and functionality, with only changes to its name. Mobile sports betting is also expected to launch in Pennsylvania in the coming weeks, and FOX Bet will likely offer a similar product within state lines, thanks to its pre-existing licensing partnership with Mount Airy Casino.