Flutter Entertainment and Fox Corporation have announced the closure of their joint venture, the sports betting platform Fox Bet. According to the announcement, the phased closure of Fox Bet’s operations began on July 31 and will conclude by August 31, 2023.
Fox Bet Shutters Sports Betting Platform
Fox Bet, which was launched in 2019 by Fox and The Stars Group, was live in New Jersey, Colorado, Michigan, and Pennsylvania. However, despite its presence in these states, Fox Bet contributed less than 3% to Flutter’s revenue of $3.3 billion in the fast-growing U.S. market last year.
The closure of Fox Bet comes as Flutter aims to return to profit in 2023 after reporting a $313 million U.S. loss in 2022. The Fox Bet and PokerStars brands were responsible for $91 million of that loss. The decision to close Fox Bet is expected to reduce these losses significantly. Flutter CEO Peter Jackson stated earlier this year that he expects “between half and two-thirds of that to go away” if Fox Bet was no longer operational.
— FOX Bet Sportsbook (@FOXBet) July 31, 2023
Despite the closure of Fox Bet, 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 also continue to hold its option to acquire 18.6% of FanDuel and its 2.5% stake in Flutter.
Fox Bet customers’ accounts will remain accessible until August 31, 2023. After this date, customers can access their account information and funds through the PokerStars or PokerStars Casino app.
With Fox retaining the rights to its brands and planning to launch a new game, it’s clear that the company remains committed to its presence in the betting industry. As for Flutter, the closure of Fox Bet is a strategic move aimed at reducing losses and returning to profitability, with a focus on its market-leading brand, FanDuel.
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