The Stars Group names Fox Sports as US media partner
Fox Bet to be launched in Q3 as part of wide-ranging commercial and marketing agreement
The Stars Group has announced a landmark deal with Fox Sports that will see the operator develop a Fox Bet branded product and leverage the Fox brand and media assets in its US sports betting push.
Under the terms of the deal, the partners will launch a real-money and free-to-play Fox Bet product this autumn.
Fox will also acquire a 4.99% stake in Stars at a cost of some $236m. Stars said the cash will be used for general corporate purposes and paying down some debt.
Stars CEO Rafi Ashkenazi suggested the firm was aiming to replicate the Sky Betting and Gaming model in the US, including the use of the free-to-play product as an acquisition and marketing channel.
“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,” Ashkenazi said.
“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”.
Under the commercial agreement, Stars secures an exclusive license for the use of certain Fox Sports trademarks for a range of games and online sports wagering, and certain exclusive advertising and editorial integration rights on chosen Fox Sports broadcast media and digital assets.
Fox in return receives brand license, integration and affiliate fees, while Stars has also agreed to a minimum annual advertising commitment on certain Fox media assets.
Fox Sports CEO Eric Shanks 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.”
Fox last week also secured a host of other sports betting domains including foxfantasysports.com, foxsportspoker.com and foxsportsvegas.com
The long-rumoured partnership marks the first such arrangement in the US between an operator and a media company, although it is understood the majority of media brands are doing their due diligence on sports betting opportunities.
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