Seven in talks to join fantasy betting venture

Kerry Stokes’ Seven West Media is in advanced discussions with CrownBet and News Corp’s Fox Sports.

Seven Group executive chairman Kerry Stokes.

Kerry Stokes’ Seven West Media is in advanced discussions with CrownBet and News Corp’s Fox Sports about becoming an equity partner in their fantasy betting joint venture Draftstars.

It is understood a deal could be announced as soon as this week, with the parties aiming to strike an agreement ahead of the AFL finals series.

Draftstars was launched in April by Fox Sports and CrownBet, which is 67 per cent owned by James Packer’s Crown Resorts, as revealed by The Australian.

Draftstars participants pay an entry fee before assembling a team of players for a given match or round to form their own fantasy team, with winners receiving a payout from the contest prize pool. The company retains a fee known as a “rake”.

Seven holds the free-to-air AFL broadcast rights and could market Draftstars to huge free-to-air audiences during the finals series. Fox Sports holds the subscription TV rights to the AFL and NRL.

The rationale behind the joint venture was that Fox Sports would provide marketing muscle and cross-­promotion with its AFL and NRL coverage, while CrownBet has a gambling licence, industry expertise and is the AFL’s official ­wagering partner.

The news comes as Seven moves to increase its exposure to the gambling industry, which is free-to-air TV’s fastest growing advertising category.

The network launched its Racing.com free-to-air channel in a joint venture with Racing Victoria last year.

There has also been speculation that Seven or its parent company Seven Group Holdings could bid for the West Australian TAB gambling agency, should it be privatised after the state’s election in March.