Sep 13, 2019
Stars Group and FOX Sports Sign Major Deal
By RTR Dennis
FOX Sports and the Stars Group have signed a deal that will see them work together in the sports betting industry. The two sides describe the venture as a “first of its kind national media and sports wagering partnership.”
As per the deal, FOX will acquire a 5 percent stake in the Stars Group. With each share valued at $16.44, the media giant will own $236 million worth of Stars. Meanwhile, the Stars Group will use the investment to pay debts and invest in more projects.
FOX Dives Into Sports Betting
FOX Sports is one of the world’s biggest sports media outlets. They’re also on the path to becoming a titan in the betting game too.
They’ll launch two sports gambling products in the near future. The first will be a free site, where users can win prizes by guessing the outcomes of sports games. The other will be FOX Bet, a traditional online sportsbook that’ll be offered in any state with legal betting.
FOX Sports’ lofty position in the media gives them an edge over many competitors. They can advertise FOX Bet on their station, which is viewed by millions of people every day.
PokerStars Continues Gaining Legitimacy in US
The Stars Group has made great strides in changing the perception of their brand, including PokerStars. The latter ran afoul of the law in the US after the Unlawful Internet Gambling Enforcement Act (UIGEA) was signed into effect.
Everything came crashing down in April 2011, when PokerStars’ former owners, Rational Group, were indicted for money laundering. The Rational Group eventually sold PokerStars to Amaya Inc, which rebranded to the Stars Group. The latter has worked extensively to improve the brand’s image in America.
States like California sill refuse to work with the Stars Group/PokerStars, citing that they’re “bad actors.” New Jersey, however, has welcomed the company into their regulated market.
The deal with FOX Sports is yet another sign that the Stars Group is making inlets in the US. They’re now going to help a $23 billion company launch a real-money sportsbook.
Will FOX Sports Also Get Into Online Poker?
The Stars Group has gotten into the sports betting market in recent years under BetStars. However, they’re still best known for PokerStars — the world’s largest poker site.
That said, it’s a wonder if FOX Sports will use this partnership to extend into online poker as well. The company has given no indication that they’re interested in doing so. Then again, they have a perfect chance to take on internet poker with the Stars Group as their partner.
Whatever the case may be, FOX is definitely moving forward with online sports betting. New Jersey will be a logical launching point, because the Garden State already has legal internet betting. FOX Sports will benefit from the Stars Group’s years of experience while undergoing their new gambling venture.
The Stars Group, meanwhile, can leverage their high-profile partnership with FOX to land more deals. After all, the FOX Sports alignment gives them more clout in the US market.