Flutter Entertainment, Fox Corporation To Shut Down FOX BetPhased Closure To Occur Through August |
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Flutter Entertainment and Fox Corporation announced the decision to close the sports betting platform FOX Bet.
A phased closure of FOX Bet’s operations will take place between July 31 and August 31, 2023. Customers will be able to withdraw their account balances.
The move comes despite a growing sports betting market in the U.S. Nationwide, Americans wagered a record $31.11 billion on sports in Q1 2023, generating an all-time high of $2.79 billion in quarterly revenue (+70.1% year-over-year), according to figures from the American Gaming Association.
The growth compared to Q1 2022 was largely driven by new market launches in Kansas, Massachusetts and Ohio. The FOX Bet brand didn’t enter those new markets.
Flutter operated FOX Bet as part of The Stars Group US, along with the US-facing operations of PokerStars. Flutter will retain ownership of PokerStars, in addition to US sports betting market leader FanDuel.
FOX will retain future use of the FOX and FOX Bet brands, including FOX Bet Super 6, and intends to launch a new FOX Super 6 game later this summer.
FOX will continue to hold its option to acquire 18.6% of FanDuel and in addition holds a 2.5% stake in Flutter.
FOX Bet, a sports betting platform available in Colorado, Michigan, New Jersey and Pennsylvania, was launched in 2019 by FOX and TSG.
TSG was acquired and operated by Flutter as of May 2020.
FOX Bet trailed in market share to numerous sports betting competitors, including the likes of FanDuel, DraftKings, BetMGM, and Caesars Sportsbook.
The decision to close FOX Bet follows the sale of PointsBet, another sports betting operator with low market share. PointsBet was acquired by Fanatics Gaming for $225 million earlier this summer.
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