Flutter and Fox to shutter FOX Bet in phased closure
London-listed operator and media giant agree month-long closure plan of “struggling” sportsbook brand
Flutter Entertainment and Fox Corporation have confirmed the upcoming closure of the FOX Bet sportsbook brand.
The duo have confirmed the closure will be undertaken on a phased basis, over a period between 31 July and 31 August.
FOX will retain future use of the FOX and FOX Bet brands, including FOX Bet Super 6, and intends to launch an all-new version of the FOX Super 6 game later this summer.
Launched in 2019 by The Stars Group (TSG) on a joint venture basis with FOX, Flutter absorbed the brand when it acquired TSG in May 2020, with it functioning as part of the firm’s US division since.
However, FOX Bet has been slow to rollout across the US, with Flutter CEO Peter Jackson blaming product issues for the delays.
Flutter migrated the FOX Bet brand onto the Paddy Power Betfair proprietary technology platform in 2021, hoping to amend these issues.
In addition, Flutter has favored its FanDuel brand over the FOX Bet business, a move which has paid dividends given the former’s significant success in the US sportsbook market.
FanDuel now contributes almost 95% of Flutter US’s divisional revenue, a contribution which has buoyed Flutter’s performance at a group level. The FTSE 100 firm’s US division is its largest revenue driver ahead of its UK and International arms.
FanDuel is live online in 19 states, plus Washington DC, while FOX Bet’s online operations have only expanded to four states at the time of writing.
FanDuel is the market leader for sports betting in the US, with a market share of more than 50%.
Since 2019, FOX has bemoaned the slow rollout, but had continually affirmed its confidence in the potential of its sportsbook as a revenue generator for the global media giant.
In addition to confirming the closure, Flutter has confirmed that FOX Corporation will retain its option to acquire 18.6% of FanDuel, with FOX already holding a 2.5% stake in Flutter.
The retention of the option follows the settlement of arbitration proceedings between Fox and Flutter in November 2022 over the determination of pricing on the option concerned.
The New York-based Judicial Arbitration and Mediation Services (JAMS) sided with Flutter, following Fox’ challenge, that any stake purchase should be based on FanDuel’s December 2020 valuation of $20bn.
Last year, FOX CEO Lachlan Murdoch suggested there was a “huge opportunity” in leveraging the FOX brand in sportsbook, highlighting the strong performance of the FOX Super 6 game.