- FOX Sports received 5% of The Stars Group in exchange for $236 million.
- The partnership will allow the betting apps to be located in states with and without legal sports betting.
- The stock price for the Stars Group jumped over 15% overnight upon release of the news.
LOS ANGELES – In a plan two build and launch two sports betting apps, the Stars Group Inc., and FOX Sports have come together in a 25-year agreement.
This is the first time a major media company has been associated with any betting products, which are expected to launch before the NFL season begins.
In a statement released by FOX Sports on Wednesday, the app and partnership details were fully laid out.
Both of the products will be incentivized offering prizes to the players; however, one is specifically built for states without legal sports betting laws approved on the books. The other is a real money wagering platform that will be available only in states where mobile betting has been approved.
The first mobile sports betting app will offer cash prizes to those who are able to predict the outcome of a sporting event. For the full-service betting app, aptly named FOX Bet, players will be able to place a variety of wagers that are in accordance with their state’s regulations.
“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,” said FOX Sports CEO, Eric Shanks.
Shanks is very confident in the capability and opportunity for these apps to succeed, as his company received 5% of the Stars Group through the deal, in exchange for $236 million. The partnership even gives FOX the rights to acquire up to 50% of The Stars Group, over the course of the next 10 years.
“We believe this strategic partnership uniquely positions us to build a leading betting business in the U.S., which represents one of the most exciting long-term growth opportunities for our company,” said CEO of the Stars Group, Rafi Ashkenaz.
Investors seemed to agree with Ashkenaz, as the news of this agreement caused the stock price for Stars Group to spike 15+% overnight. From just above $17.5 a share to $20.3 a share the company has reached its highest share price of the year.
Other aspects of the partnership, as explained by the Stars Group, include giving them the exclusive license to use FOX trademarks on their games. Additionally, the company will have to purchase an undisclosed amount of advertising on FOX through the course of the partnership.
Michael began writing as an NBA content writer and has spent time scouting college basketball for Florida State University under Leonard Hamilton and the University of Alabama under Anthony Grant. A graduate of both schools, he covers topics focused on legal sports betting, betting odds, and casino reviews. Michael likes to golf, play basketball, hike, and kayak when not glued to the TV watching NBA games.