Fox Bet Shutting downFlutter Entertainment Ltd. and Fox Corp. unveiled their intentions on a quiet Sunday to gradually terminate FOX Bet, signaling the conclusion of a digital sports wagering service once vying with the unparalleled FanDuel. The partners declared this in a joint statement, outlining a step-by-step closure process, culminating around August 31. US states like Pennsylvania, New Jersey, Colorado, and Michigan, where FOX Bet has been available, would continue to embrace the popular FanDuel, alongside other states.
FOX Bet patrons in Pennsylvania were informed on Monday that sports betting on the platform has ceased across the US. However, businesses connected to PokerStars and PokerStars Gambling remain unaffected, pledging to operate as usual. Bloomberg News broke the initial story of FOX Bet's impending closure on Saturday.
The launch of FOX Bet in May 2019, as part of a collaboration with the Stars Group, hinted at a potential merge with Flutter, finalized by May 2020. Bloomberg noted that Flutter failed to elevate Fox Bet to the brand prestige it pursued. Currently, FanDuel stands prominently as the largest sportsbook in America, covering over half of the legal betting market and thriving in nearly every gambling-legal state.
JMP Securities projects FOX Bet's footprint in the US market as a mere 0.2%.
In late 2022, Sports Handle discussed an NY arbitration ruling, predicting the termination of FOX Bet. By August 2023, Fox and Flutter might halt their agreement, yet Fox retained the choice to invest $3.72 billion for a nearly 19% stake in FanDuel Group, with a yearly increase of 5%. Fox’s CEO Lachland Murdoch voiced to Axios in 2022 that the limited scope of FOX Bet didn’t meet their hopes, reflecting their disillusionment.
The sportsbook's setback parallels the breakdown of various collaborations between betting firms and major media players. PointsBet from Australia, optimistic about a game-changing $500 million pact with NBCUniversal to boost its US database, found the deal insufficient for the needed scale—a sentiment echoed by PointsBet Holdings Limited CEO Sam Swanell following the sale approval of US operations to Fanatics.
There was buzz about ESPN sealing a venture with DraftKings last year, aiming to license its sports betting functionality to the operator, though it eventually foundered. Given how giant media names like Fox and ESPN faltered in creating dominant sports betting brands, experts question if anyone can dethrone FanDuel and DraftKings from their stronghold in the US market.
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Last Updated: September 26, 2023
