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.
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.”
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.
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 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.
Is there any #FantasyFootball Gold left on the Wire? Who’s the Gem of the Waiver Wire who can win your league? Fantasy Football GMs tend to overreact after week 1 and leave some gold on the wires. Tony “Jigsaw” Cutillo dives into some players to stash who could pay off HUGE dividends down the stretch.
PENN Entertainment CEO Jay Snowden initially promised that ESPN BET would be live in New York by late August, just in time for the college football season. However, as September begins and the NFL season looms, ESPN BET remains inactive in one of the country’s most crucial sports betting markets.
During the PENN Entertainment Q2 earnings report on August 8, Snowden announced the highly anticipated ESPN BET launch in New York. But despite those claims, the platform has yet to debut in the Empire State. The sports betting community expected ESPN BET to make a splash by the start of the college football season, but even as teams like Florida State have already played multiple games, the app remains unavailable in New York.
One challenge for ESPN BET in New York is the state’s steep 51% tax on online sports betting revenue, which could limit the promos and bonuses available to users compared to other state launches. Snowden emphasized this, noting that ESPN BET would take a “disciplined approach” to customer engagement due to the high tax burden.
As the NFL season kicks off this Thursday, September 5, with the Kansas City Chiefs facing the Baltimore Ravens, sports betting operators are preparing for a massive influx of wagers. New York, being the largest sports betting market in the country, will be a pivotal battleground for ESPN BET. However, with the platform still dark in the state, it risks missing out on a crucial early season surge.
There are still prime opportunities for ESPN BET to capitalize on this weekend’s full slate of games, including the New York Giants vs. Minnesota Vikings on Sunday, September 8, and Monday Night Football featuring the New York Jets against the San Francisco 49ers on September 9. These matchups are high-stakes betting opportunities, but only if ESPN BET can launch in time.
Since its initial launch in November 2023, ESPN BET has struggled to break into the top three of sports betting operators in many states where it’s licensed, trailing behind heavyweights like FanDuel and DraftKings. If ESPN BET hopes to gain ground on these market leaders, a strong performance during the NFL season is critical. Launching in New York, the most lucrative sports betting market in the U.S., will be key to achieving this.
ESPN BET’s entry into New York was made possible through PENN Entertainment’s acquisition of Wynn Interactive Holdings’ New York online sports betting license earlier this year. In February, PENN finalized a deal to acquire WSI US, LLC from Wynn for $25 million, securing ESPN BET’s access to the highly coveted New York market.
This acquisition was a significant step, as PENN Entertainment previously failed to secure one of New York’s nine initial online sports betting licenses during its 2021 joint application with Fanatics Betting and Gaming and Kambi. That bid projected $1 billion in incremental tax revenue for the state over a decade but was ultimately unsuccessful.
With the NFL season officially starting this week, all eyes are on ESPN BET to see if it can capitalize on the sports betting frenzy in New York. Launching by Sunday, September 8, or at the latest, Monday Night Football on September 9, could be critical for gaining a foothold in the competitive New York market. However, with no official launch date announced yet, ESPN BET is running out of time to make its mark.
The NFL is set to kick off this week, and the American Gaming Association (AGA) is predicting that the 2024 season will be the most bet-on since sports betting was legalized nationwide in 2018. According to the AGA’s first official projection for this NFL season, American adults are expected to wager more than $35 billion at legal sportsbooks during the 2024 NFL season.
If the AGA’s predictions hold, this year’s betting handle will surpass last year’s NFL season total of $26.7 billion. This massive jump in NFL wagering is based on data from states that separate handle and revenue totals between college and professional football.
Newcomers to the sports betting market—Maine, North Carolina, and Vermont—will contribute to this surge as they experience their first full season of NFL sports betting.
AGA President and CEO Bill Miller highlighted the importance of legal sports betting and consumer protection in a recent statement:
“With the excitement of another NFL season upon us, Americans are placing their bets with confidence, knowing the legal sports betting market prioritizes consumer protection and responsibility. As the season unfolds, the AGA and our members remain dedicated to working with the league, regulators, and other stakeholders to ensure fans have the knowledge and tools to keep sports betting a safe, fun part of the gameday experience.”
The AGA also shared insights into the growing emphasis on responsible gaming. Recent data shows that 90% of past-year sports bettors consider it important that their chosen sportsbook is legal and regulated, while 88% believe the industry is committed to responsible gaming practices. Additionally, 96% of past-year bettors are familiar with at least one responsible gaming resource.
The AGA’s optimistic estimates could be beneficial for ESPN BET, which is looking to gain momentum during its first full NFL season. ESPN BET, owned by PENN Entertainment, faces an important few months as it competes against DraftKings and FanDuel, the current market leaders.
A critical move for ESPN BET would be launching its platform in New York, the largest sports betting market in the U.S. Although PENN Entertainment CEO Jay Snowden previously said ESPN BET would launch in late August, this has yet to happen.
If ESPN BET hopes to start the season strong, launching in New York ahead of the NFL season will be a crucial first step in positioning itself as a top player in the growing online sports betting industry.
FanDuel has announced a new responsible gaming partnership with former NBA player and coach Randy Livingston and his wife, sports agent Anita Smith, to mark the start of Responsible Gaming Education Month. Together, they will introduce “Trusted Voices: Conversations about Betting,” a program designed to help parents, guardians, and coaches have meaningful discussions with young people about the risks of gambling and recognizing the signs of problem gambling.
The “Trusted Voices” initiative, led by FanDuel, Livingston, and Smith, will provide families and coaches with tools and resources to facilitate conversations about the risks of gambling and how to engage responsibly. The program will include a video series in which Livingston shares his personal struggles with problem gambling and his recovery journey, highlighting the importance of addressing these topics early on.
The resources and program details are available at conversationsaboutbetting.com.
Alison Kutler, Vice President of Responsible Gaming and Community Impact at FanDuel, expressed excitement about the partnership:
“Randy and Anita have an incredible story and a desire to help others, and we are excited to expand our advocacy program to raise awareness of the importance of having early and informed family conversations about gambling and the associated risks. FanDuel aims to set and continuously raise the standard for what it means to be a responsible operator, and we look forward to Randy and Anita strengthening our RG ambassador team moving forward.”
The video series will focus on the importance of modeling responsible gambling behavior for adults and explain topics such as proxy betting and the dangers of underage access to sports betting platforms.
In the video series, Randy Livingston will share his personal experience with problem gambling, from his early exposure to gambling, hitting rock bottom, and eventually recovering with the support of his wife, Anita Smith. Livingston expressed his passion for helping others avoid the same pitfalls:
“As legal sports betting continues to become more accessible, I knew I wanted to use my experience to help families engage in proactive and informed conversations about gambling. It became apparent to Anita and me that FanDuel shares our goal of helping parents navigate these tough, but important conversations.”
The content is created in partnership with EPIC Global Solutions, a leading provider of gambling harm prevention services, ensuring that the materials are informative and effective. The video series will be supported by paid media on digital platforms, promoted across FanDuel’s social channels, and available on fanduel.com/playwell.
Anita Smith emphasized the importance of addressing gambling issues:
“It is important to normalize conversations about gambling, and this program is intended to help families get comfortable with traditionally uncomfortable conversations. Randy and I are delighted to work with FanDuel to amplify the program’s content and drive positive outcomes for young people and anyone who may be struggling with problem gambling.”
In addition to this new initiative with Livingston and Smith, FanDuel announced another partnership with Kindbridge Behavioral Health, which focuses on mental health support for individuals struggling with gambling issues. The partnership will offer direct access to mental health assessments and group support services for individuals who self-exclude from the FanDuel platform.
This program was piloted in New Jersey and Ohio, further expanding FanDuel’s commitment to responsible gaming and mental health support.
At WIN DAILY®, our motto is to “change your game and change your life.” We want to help you win that bet, parlay, and big DFS tournament and have some fun while you do. Our goal is to help you turn your love of sports into a profit center while playing responsibly and enjoying your time with a like-minded community.
