Fox Corp is going all-in, when it comes to regulated online gambling. The media giant has spent a whopping $236 million on a 4.99% stake in The Stars Group, as it prepares to launch its own online gambling brand, Fox Bet, which will offer sportsbetting services to players in New Jersey. This is great for the entire sportsbetting vertical in the legalized markets according to UsSportsBonus.com.
This is quite a long-term deal, as it will last for 25 years. In ten years, Fox Corp will also have the option to purchase a 50% stake in The Stars Group. So, both companies definitely foresee themselves working together in the American online betting market for a while.
There are some very exciting things in store for players in regulated states across America, including New Jersey, Delaware, Nevada and Pennsylvania. By Fall 2019, they’ll be able to play at the brand-new Fox Bet website, which will offer up sportsbetting services.
There will be two products launched at the same time. The first is a play-money platform that won’t require players to spend any money and the second will allow players to wager actual cash on sports events. The Stars Group has already fared very well in New Jersey so far, so its influence is sure to help Fox Bet succeed.
It is certainly a wise decision for Fox Corp to get involved in the sportsbetting industry. In the first year after sportsbetting was legalized in New Jersey, local residents wagered $3 billion on their favorite teams. So, Fox Corp is sure to benefit greatly from getting a piece of this pie.
There is also the potential for both companies to expand into other states. Currently, The Stars Group’s Bet Stars brand is only available to players in New Jersey, but we could see both companies venture into states like Pennsylvania and Delaware as well.
Where Do Other Media Companies Stand?
Currently, Fox is one of the only legacy media company in America to step into the regulated online gambling market. Comcast is the only other company to do so, having invested in FanDuel in 2013.
Most other brands, like Disney, have shied away from the betting market, as it seems as though they are concerned about associating themselves with gambling services. However, as online betting and casino games become more widely regulated across America.
It’s also likely that these companies will be slow on the uptake until they see how successful Fox Bet is. If the example set by media companies in other countries is anything to go on, Fox Corp’s venture will be fruitful.
The United Kingdom serves as an interesting example when it comes to the entry to media brands into the gambling world. Both The Sun and The Mirror, which are well-known newspapers in the country, have launched their own gambling sites. Sun Bingo and Mirror Bingo are now two of the biggest gambling brands in the UK, and American companies could certainly learn from them.
This is a very exciting time in the American gambling market. After the online poker boom at the turn of the century, this is the most growth that the digital gaming industry has seen. We’re likely to see many more big-name companies following in Fox’s footsteps, helping to expand the online betting and online casino markets so they’ll be more accessible to players across the country.
It’s also important for the market to expand in order to provide players with more choice. The casino and sportsbetting sites there are, the more freedom consumers have and they’ll be able to choose an online gaming experience that best suits their individual tastes.