The FOX Bet era is coming to a close.
Flutter Entertainment PLC and Fox Corp., citing "commercial reasons," have announced a monthlong shutdown of their legal sports betting partnership, FOX Bet.
“A phased closure of FOX Bet’s operations will take place between 31 July and 31 August 2023,” a press release stated.
— FOX Bet Sportsbook (@FOXBet) July 31, 2023
Dublin-based Flutter ran FOX Bet as part of The Stars Group US, which it acquired in 2020. Flutter is keeping PokerStars, as well as its majority stake in FanDuel.
FOX, meanwhile, will retain the FOX Bet brand, which it plans to use for an all-new FOX Super 6 free-to-play game that will launch later this summer. FOX also has and will continue to hold an option to buy 18.6% of FanDuel and has maintained a 2.5% stake in Flutter itself.
FOX Bet is telling customers their funds will remain in their account and (in states where it's possible) can be used to play on the PokerStars or PokerStars Casino apps even after next month's shutdown.
"Your FOX Bet Account will be available through your normal login process until August 31, 2023," the bookmaker says on its Michigan site. "If you have not closed your account prior to August 31, 2023, your account can be accessed through the PokerStars and PokerStars Casino Apps using the same login, or a customer service agent can assist you."
Flutter and FOX butted heads over the price the latter would need to pay to buy its stake in FanDuel, and went to arbitration to resolve the issue. The arbitration tribunal ruled the price payable for the option should be based on FanDuel’s fair market value as of December 2020, which would be around $20 billion, meaning FOX would have to fork over close to $4 billion.
The dispute may have helped Flutter and FOX reach their decision to shutter their joint venture, FOX Bet. The bookmaker never managed to generate significant market share among sports betting sites — it’s only available in only four states: Colorado, Michigan, New Jersey, and Pennsylvania — and Flutter had a clear focus on building up FanDuel in the U.S., even after it acquired Stars Group and the FOX Bet partnership.
Tough sledding
There is no indication FOX Bet was attracting much attention in the handful of states it operated either. In Pennsylvania, for instance, its share of the online sports betting market went from around 5% of the total handle in January 2020 to 0.9% in June of this year, according to VIXIO GamblingCompliance data.
Furthermore, the online sports betting business in the U.S. is increasingly becoming dominated by two names, DraftKings and FanDuel. Other operators, such as FOX Bet, are being crowded out by the big boys.
FOX Bet has already stopped accepting action from bettors. What will happen to futures beyond August remains to be seen.
"An alternative to FOX Bet Sportsbook is to place your bets with our sister brand, FanDuel Sportsbook where available," the bookmaker says.
