Fox and Flutter Entertainment are planning to close their sports-betting business, Fox Bet, according to a report by Bloomberg News. The report, which cites unnamed sources familiar with the matter, says that the closure could be announced as soon as Monday, July 31.
Fox Bet was launched in 2019 as a joint venture between Fox and The Stars Group, a Canadian gambling company. However, The Stars Group was acquired by Flutter Entertainment in 2020, which created a conflict of interest, as Flutter also owns the popular sports betting app FanDuel.
As a result, Fox and Flutter have been unable to agree on a way to move forward with Fox Bet. The report says that Flutter will retain the customer database and market-access agreements associated with Fox Bet, while Fox will keep the rights to the brand and its option to buy an 18.6% stake in FanDuel.
The closure of Fox Bet is a sign of the growing consolidation in the US sports betting market. As more states legalize sports betting, the competition is becoming increasingly fierce, and smaller players are finding it difficult to compete.
It remains to be seen what will happen to the employees of Fox Bet. The report says that Flutter is “exploring options” for them, but it is possible that some or all of them could be laid off.
The closure of Fox Bet is a setback for Fox, which had hoped to become a major player in the US sports betting market. However, the company’s plans were ultimately thwarted by the competition from FanDuel and other established players.
Despite their efforts, Fox and Flutter couldn’t find common ground for Fox Bet. Market consolidation in the US sports betting industry impacts Fox Bet’s closure. States legalizing sports betting intensifies competition, challenging smaller players like Fox Bet.
