Fox Corporation has paid US$236m for a 4.99 per cent stake in The Stars Group, in the biggest media move yet within the nascent US sports betting market.
The move will result in the launch of sports betting platform Fox Bet in the second half of 2019. There will be two product launches as a result of the deal: a nationwide free-to-play sports prediction game and a second product, under the Fox Bet brand, for real-money wagers in regulated states.
Toronto-based The Stars Group, which paid ¢4.7bn for Sky Betting and Gaming last year, will gain an exclusive licence to use certain Fox Sports trademarks. The group intends to use the net proceeds for “general corporate purposes and to prepay outstanding indebtedness on its first lien term loans”.
Rafi Ashkenazi, CEO 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 US.”
Eric Shanks, CEO and executive producer at Fox Sports, added: “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.”
