Fox sports, part of one of the most popular media houses in the country, has announced that they would be launching a dedicated sport betting app Fox Bet, this fall. This is an unprecedented move for a media company to enter in the gambling industry.
The announcement comes as a part of the deal the media company inked with The Stars Group on Wednesday evening.
The Fox Bet App will feature two different products – one which will allow players to register and play games for free and win cash prizes by guessing the odds and the other will be like a typical sportsbook where players can bet on games. However, the latter will be available as per the sports betting legislation depending on the states.
According to the deal with the Star Group, Fox will pay $236 million for a 4.99% stake in the company. Fox will also be authorized to increase its stake in the company beyond 50 percent within a ten-year window.
Fox Sports CEO & Exec Producer Eric Shanks said, “There’ll be certain places, like our FS1 show ‘Lock It In,’ where it’s going to be tightly integrated. Probably on some of our radio shows that are on television, more tightly integrated. You will see integrations in our pregame shows, but sitting here today, just announcing this deal, we still have a lot of work to do to say exactly how all of that’s going to be.”
“This is a deal that perfectly aligns our incentives for the long term. Whether it’s the lock up of Fox Sports’ iconic brand with a great global sports wagering operator or if it’s the investment that (Fox Chair Lachlan Murdoch) is allowing us to make in the parent company, The Stars Group, which clearly says that we’re committed to this for the long term,” he added.