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U.S. sports broadcasting group Fox Sports announced this week that they're buying into The Stars Group, purchasing 4.99% of the company for $236 million in order to secure a partnership.
The goal of the agreement is to form Fox Bet, which will become a sports wagering portal for those who want to wager in jurisdictions where the activity has been legalized. Initially, the games will be a free to play game where cash prizes are doled out before eventually transitioning to real money sportsbetting. The partnership between the two groups will run for 25 years and grant TSG access to use Fox Sports trademarks for their games and sportsbetting services. Fox Sports will get licensing and affiliate fees as well as obligations from TSG to advertise on Fox media assets.
Additionally, Fox Sports will have the right to purchase up to 50% of TSG's U.S.-facing business operation at the 10-year mark.
Commenting on the agreement Fox Sports CEO Eric Shanks said, "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.
"Digital sports wagering represents a growing market opportunity that allows us to diversify our revenue streams, connect directly with consumers and expand the reach of the FOX Sports brand."
Rafi Ashkenazi, the CEO of The Stars Group added: "We believe this strategic partnership uniquely positions us to build a leading betting business in the US, which represents one of the most exciting long-term growth opportunities for our company.
"Leveraging our proven media partnership strategy with Sky Sports in the UK, we are excited to partner with Fox Sports to integrate wagering into sports media and drive customer acquisition and retention in the US."