Fox Sports Makes Major Sportsbet Investment
Fox Sports, a major leader within the sports broadcasting industry, has invested a significant amount of money into its sportsbetting platform. The company recently announced that they will be releasing a betting app called Fox Bet. Expected launch date is set to August 2019.
Moreover, Fox has entered into a new partnership with The Star Group, a major gaming company. The Star Group is perhaps best known for their ownership of the gambling app PokerStars. Fox will acquire 4.99% of the group’s shares for the net sum of $236 million.
Sports betting is widely regarded as the next battle ground for major media companies. The market is estimated to be worth more than 100 billion USD, and Fox is positioning itself aggressively for a piece of that revenue.
Targeting mobile users
Fox Bet will allow cellphone users to wager bets on sporting events, directly through their phone. The app will be synced with the pre-existing Fox Sports App, which allows users to follow sports events in real time. Fox Bet will include new innovative betting opportunities, along with a free to play version.
Mobile applications are widely regarded as the future form of online sports betting, given more users have moved to mobile platforms.
Due to the repeal of PASPA, which banned sports betting, powerful companies such as Fox are now lining up to enter the industry. CEO of Fox Sports, Eric Shanks, says it represents a huge move forward for the company and its users. This move will make it easier for millions to bet on sports. Fox Bet will also allow for Fox Sports to diversify its revenue stream by entering an untapped market.
The benefits are potentially unlimited, in a market estimated to be worth hundreds of billions of dollars. The US sports market is the world’s largest, measured by annual revenue. Broadcasting companies such as Fox Sports will likely benefit from synergies, when merging their existing services with the new gambling app.
To begin with, the app will only be accessible to residents of New Jersey. However, Fox expects to expand its reach as the industry becomes legalized in other states.
Waiting for other states
Currently, NJ and Nevada are the only two states where sports betting is currently legalized. Pennsylvania has been mentioned as a potential target, given the state is moving to legalize sports betting. Other states, including West Virginia have passed quasi-laws that allow for sports wagering, given it is done through land based casinos with existing licenses.