Fox to enter the Sports Betting Market with Fox Bet
Fox Corp. is purchasing 4.99% of Stars Group Inc. a gambling company to open its own sports betting platform. Thus, this will enable Fox to enter the Sports Betting Market in the U.S. via Stars Group Inc. The cost of entering the betting market comes at the price of $236 million.
According to several gambling news websites, Rupert Murdoch and his family will pay $236 million to buy its share. Thus, by buying into Star Groups, they will have access to the resources of Sky Betting and Gaming. This company became part of Star Groups last year and is their core asset for their sports betting software division.
In addition, thanks to this deal, shares of Stars Group went up as much as 11% before they had to end the trades. Thus, the organization from Toronto had risen 5.9% this year through Wednesday’s close. Fox in conjunction with Star Groups will launch Fox Bet later this year to enter the online betting industry.
Details of the Fox and Star Group Deal
According to Bookie Pay Per Head websites, Fox Bet will offer two products as they enter the U.S. gambling market. The first will be a free betting website and app. This is where players can win cash and prizes by correctly predicting the outcome of a game. Furthermore, they are hoping that they will be able to convert these players into cash players.
The second will be a sports betting website and app where players can use real money to bet on sports. Of course, it will only be available in states where fox has a license to operate.
Part of the deal includes Star Group getting an exclusive license to use specific Fox sports trademark. Furthermore, the license will be for up to 25 years and they pay to advertise on Fox Sports outlets.
Another part of the deal is that Fox Sports has the right to acquire up to 50% of Star Group. However, it is only for the company’s interest in the U.S. and is valid for only 10 years. All of these conditions together will allow Fox to enter the Sports Betting Market.
