Pennsylvania sportsbooks welcome a new player to the ever-evolving sports betting landscape.
Fox Sports and The Stars Group (TSG) are joining forces to bring a merger of media and sports betting to the nascent US sports betting market.
BetStars, TSG’s sports betting product, which currently offers sports betting in New Jersey, will become Fox Bet under the agreement.
As a result, two different products will emerge this fall:
- A national, free-to-play game
- Fox Bet sports betting app
Eric Shanks, chief executive officer and executive producer of Fox Sports, commented on the momentous news.
“FOX Sports is already synonymous with the best live sports events in the country and now we are expanding the way we immerse fans in the sports culture they love.
“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.”
What the deal means for PA sports betting
Now, the company is bringing a new partner, name and app to the sports betting scene in PA. Fox Bet, a real-money sports betting app will be launch in states with legal sports betting, including Pennsylvania.
But first, the company will migrate BetStars to the Fox Bet brand in New Jersey in time for the 2019 NFL season. At the same time, it will launch the free-to-play games.
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 US, 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.”
Be patient, though. Mount Airy only recently submitted its sports betting application to the Pennsylvania Gaming Control Board (PGCB). Additionally, it still has to present its plans to the PGCB.
Fox Sports and The Stars Group: the details
As mentioned earlier, the partnership will launch two sports betting products this fall.
A national, free-to-play game will award cash prizes for correct game predictions. Free-to-play games are not new to online gambling markets. It is an extremely popular and effective way of introducing new players to sports betting.
The Fox Bet app will be available in states with regulated sports betting. Bettors will be able to place real-money wagers on the outcomes of various sports.
The marketing side of the agreement includes exclusive use of specific Fox Sports trademarks by TSG. Fox, on the other hand, will receive a specific brand license and affiliate fees.
As part of the deal, TSG will commit to a minimum advertising budget at various Fox media outlets.
The 25-year deal will cost Fox $236 million, which will net the company a stake of just shy of 5% in TSG. Additionally, Fox has the option to purchase an additional 50% of TSG’s US business over the next 10 years.
Why such a small stake to start? A small stake is less likely to require approval by individual state regulators. Of course, if Fox utilizes its option, there will be no avoiding a meeting with various gaming commissions.