Major League Baseball has come a long way from arguing that legal sports betting would destroy its business. The announcement of an MLB Fox Bet deal means the league is now partnered with four sportsbook operators.
The new partnership is essentially the same as its three predecessors. The deal creates cross-promotional opportunities that allow the emerging sportsbook brand enhanced access to MLB’s customers.
Details on the MLB Fox Bet deal
Fox Bet gets free reign to use MLB logos and other trademarked material in its mobile application and on its website. It also gets access to MLB’s official data feed.
For MLB, it’s another source of revenue. MLB already has similar agreements in place with DraftKings, FanDuel, and MGM.
For Fox, the company that partnered with The Stars Group to launch Fox Bet, it’s another step toward snagging a share of the growing US sports betting market. Or more specifically the NJ sports betting market.
The intent is much grander than simply having a share of the market, however.
Another step toward market dominance for Flutter
An acquisition that could change the gambling landscape in the US transpired last month. In an all-stock move, Flutter Entertainment acquired The Stars Group.
Flutter is the parent company of FanDuel. Although the acquisition is still in progress, Flutter now owns Fox Bet as well.
As part of the deal, Fox got the option to purchase up to an 18.5% stake in FanDuel. It isn’t clear whether Fox intends to exercise that or to what extent.
With this MLB deal for Fox Bet, Flutter assures it will have an appealing user experience for the app and website on par with its competitors such as DraftKings and MGM. It also assures that information about wagers on FanDuel and Fox Bet regarding MLB games will be identical.
MLB fans should expect to see promotions for Fox Bet during games and in stadiums along with the other three sportsbook partners now as well. That’s exactly what Fox Bet hopes for the most: to get its brand in front of MLB fans.
It will be another sign of MLB’s true intentions regarding sports betting: profit. The more licenses of this kind MLB can sell, the more revenue it is indirectly getting from sports betting.
While this move alone doesn’t ensure Flutter will dominate the sports betting market through FanDuel and Fox Bet, it would have been difficult without it. MLB is a strong brand on the US scene and with this move, Fox Bet hopes to latch on to that success.