The Stars Group Partners with Fox Bet to Increase Its Presence in the US
Under the provisions of this 25-year agreement, the broadcaster will take around 5% in The Stars Group, with the possibility of getting a stake of up to 50% in the company’s betting operations in the United States, over the next 10 years.
In exchange, The Stars Group will offer exclusive betting offers to Fox Sports viewers.
An Important Move for the Operator
According to the available information, The Stars Group governance is very pleased with the latest deal, and it’s confident the new partnership will give the company an advantage over its rivals in the expanding market in the US.
Commenting on this move, The Stars Group’s Chief Corporate Development Officer, Robin Chhabra – who is also in charge of overseeing the Fox Bet JV – said the deal represented an ideal springboard into the growing US market. Chhabra will not be the only one overseeing the deal, as The Stars Group has already set up an advisory board, whose members will include Ted Moss and Andy Clerkson, both with extensive industry experience.
Although The Stars Group is required to pay certain affiliate and licensing fees to Fox, the company’s CEO Rafi Ashkenazi said that Fox would have to apply for gaming licenses in those states where real-money betting was already up and running. Ashkenazi pointed out the amount the operator would invest in marketing was quite below the initial estimates.
Both real-money and free-to-play products are included in this deal, with a large potential for cross-selling real-money customers into some of the products offered by The Stars Group, such as poker and casino products. In the meantime, free-to-play products will help the operator expand its presence in those states where real-money betting hasn’t been made legal.
Increasing Its Presence in the US
Ashkenazi compared this mode to the one made by The Stars Group-owned PokerStars brand, although many believe it’s more similar to what daily fantasy operators such as DraftKings and FanDuel did with the real-money betting market in the US, where they have been dominating for years.
In a press conference held on Thursday, The Stars Group pointed out that Fox Sports had a brand awareness of nearly 80%, surpassing the leading daily fantasy sports operator by as much as 50%. Their analysis showed that nearly one-third of Fox Sports viewers would use it as a wagering brand.
When it comes to localizing The Stars Group’s betting products for the US market, the company will rely on a small team consisting of people behind the daily fantasy operator Victiv, which was purchased by The Stars Group back in 2015 and then rebranded as StarsDraft.
The Stars Group already has a number of agreements with land-based operators, including those with Resorts Casino Hotel in New Jersey, Mount Airy in Pennsylvania and Eldorado Resorts. The latter is probably the most important as it allowed the operators to gain access to 13 additional states. If all goes according to plans, The Stars Group will be in a position to expand its presence to up to 40 states.