PokerStars and FOX Sports have forged a unique partnership that will see the two embark on a new US sports betting venture.
Announced on May 8, the deal will be a “first-of-its-kind national media and sports wagering partnership.”
Under the terms of the deal, FOX will acquire 4.99 percent of the Stars Group at $16.4408 per share. The $236 million in net proceeds will help reduce The Stars Group’s debt and, in turn, be reinvested into additional projects.
FOX Sports Gambles on Betting
The most intriguing aspect of the link up is that FOX will launch two betting platforms. The first will be a free-play site where customers can predict the outcome of sporting events and win cash.
The second will be a traditional online sportsbook. Set to be known as FOX Bet, the site aims to go live in all states where sports betting is regulated.
For PokerStars, the partnership is a marked turnaround in the US. As states were fighting back against the Unlawful Internet Gambling Enforcement Act (UIGEA), the market leader became white elephant.
Despite being the biggest brand in online poker, some regulators didn’t want PokerStars in their state. Using bad actor clauses, California among others have been working to exclude the company from obtaining a gaming license.
The disdain for PokerStars stems from its continued activity in the US following the advent of UIGEA. However, as is now obvious, not all states harbor the same grudges.
Brand Recognition to Help PokerStars
Although it took time for a deal to be done, PokerStars New Jersey went live in 2016. Buoyed by that, the Stars Group is now leveraging its newfound status as a US-regulated entity.
At this stage, there’s been no suggestion that FOX will venture into the online poker sphere. However, the option is certainly there.
For the Stars Group, working with FOX will further enhance its position in the US. As one of the country’s leading broadcasters, the branding opportunities are the tip of a much larger iceberg.
By aligning itself with an established media entity, PokerStars has a chance to carve out new opportunities. What’s more, with FOX Sports an official partner, it could help solidify the links between poker and sport.
Beyond the two companies involved, the deal could trigger further innovations. Prior to the advent of regulated sports betting in the US, numerous experts said it would benefit the industry as a whole.
Although it’s only been a year since the Professional and Amateur Sports Protection Act (PASPA) was struck down, positives are starting to show. Indeed, if the Stars Group and FOX work well, more doors should open up over the next 12 months.
