Betting News 
Lachlan Murdoch, CEO of Fox Corporation, confirmed that the company intends to exercise its option to purchase an 18.6% stake in FanDuel, one of the leading US sports betting platforms. Murdoch made the announcement during the Goldman Sachs Communacopia & Technology Conference on Tuesday, emphasizing Fox’s strong belief in the future of sports betting and its potential to engage sports fans.
Fox’s Option to Acquire FanDuel Stake
While Murdoch did not specify a timeline, he noted that Fox has until 2030 to act on the option. However, the cost of exercising the option increases each year due to a 5% escalator, making it more advantageous for Fox to move sooner rather than later. As of June 30, Fox’s 18.6% stake is estimated to be valued at $6.5 billion, according to Goldman Sachs. This represents a significant increase from Fox’s initial valuation of $3.7 billion, with the escalator driving the price up to $4.3 billion.
Despite the increasing cost, Murdoch made it clear that Fox will not miss out on the opportunity:
“We’re not going to leave $2 billion on the table. We think that option will continue to grow in value over the next six years.”
FanDuel Valued at $35 Billion
According to Goldman Sachs, FanDuel is valued at approximately $35 billion, making Fox’s potential stake in the company a highly valuable asset. FanDuel is currently majority owned by Flutter, with Boyd Gaming holding a 5% stake.
FanDuel’s robust position in the US sports betting market, offering services in 22 states (including Washington DC) and mobile betting in 19 states, underlines the importance of this acquisition for Fox.
Licensing for Gaming Operations
As part of the process to acquire the 18.6% stake, Fox will need to be licensed as a gaming operator, Murdoch said:
“To fully monetize the option, we need to be licensed as a gaming operator, even with only 18.6%.”
Fox has already started working with state regulators to secure the necessary gaming licenses.
FanDuel’s Dominance in the Market
FanDuel has cemented its position as a top contender in the sports betting industry, with a strong presence across the US. The company’s growth potential and market leadership make Fox’s investment highly strategic, especially as the sports betting sector continues to expand.
While FanDuel declined to comment on the development, Murdoch’s remarks make it clear that Fox Corporation sees a significant future in sports betting, not only as an investment but also as a way to further engage with sports fans.
