Stars Group looks to repeat Sky Bet template in US through Fox Sports deal

Sky Bet's parent company the Stars Group has agreed a media and sports betting partnership with Fox Sports in the US.

The group plans to launch Fox Bet later this year, a concept which would seek to emulate the successful partnership between Sky Bet and Sky Sports in the burgeoning US sports betting market.

As part of the 25-year agreement the Rupert Murdoch-controlled Fox Corp is to buy a 4.99 per cent stake in the Stars Group for $236 million (approx £181.5m) and has the option to buy 50 per cent of Stars' US business within the next ten years.

Stars Group chief executive Rafi Ashkenazi said: "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."

Also benefiting from the deal will be William Hill who will receive a share of the revenue thanks to the terms of agreements both they and the Stars Group have with casino group Eldorado.

Analysts at Goodbody said that partnering with such a well-known media brand had a lot of positives for the Stars Group, adding there was "no doubt" it had put the company's US sports betting strategy "on a better footing".

However, they warned the business would require "a significant level of investment" and that while there were parallels with Sky Bet "the US sports media landscape is significantly more diverse, dispersed and competitive".

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