Fox Sports Becomes First Big Media Brand To Back Sports Betting
Fox is investing $236 million in The Stars Group
Fox Sports is planning to debut a legalized sports betting product in partnership with a Canadian gambling company, The Stars Group. This marks the first time a large legacy media company is branding a betting product.
As you may know, US States can now officially legalize sports betting if they want, after the US Supreme Court struck down the federal ban on May 14, 2018 – which is one year ago today. So far seven states including Nevada, Delaware, New Jersey, Mississippi, West Virginia, Pennsylvania, and Rhode Island have legal, state-regulated sports betting industries.
As part of the deal, Fox Sports said it will grant an exclusive license to The Stars Group for the use of certain Fox Sports trademarks to online sports wagering. Prior to the 10th anniversary of the commercial agreement, Fox Sports has the right to acquire up to a 50% equity stake in The Stars Group’s U.S. business.
Surprisingly, many Canadian sports betting, gambling partners and websites are actively getting involved in the new US Law. Sites like sportsbetting24 is a good example of a website offering tips and advice along with sharing rules and regulations of what is and isn’t allowed based on where you live. Investors of all kinds are looking to spring up over the next few years as the sports betting industry looks to be massive.
“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.
Obviously, one advantage Fox will have is that they will be able to use their extensive live rights to funnel viewers into their app through the shows they cover. Fox will have the NFL on Thursdays and Sundays, the World Series, WWE SmackDown, and college football from the Big Ten, Big 12, and Pac 12. Not to mention the XFL, which is coming. Fox has both the men’s and women’s World Cup. Add all that together and it’s a lot of times that a lot of viewers are going to hear an ad read for this app with an accompanying chyron on the screen.
It’ll be interesting to see how they casually work sports betting into their content without annoying those who can’t play, or frankly don’t want to bet on sports.