Fox Corp. and Flutter to Shutter Their Fox Bet Online Wagering Business

As the joint project of Fox Corp. and Flutter Entertainment, Fox Bet was perfectly positioned to capitalize on the growing US online sports betting market. However, disagreements between the two companies and diverging interests meant the project never reached its full potential. The impending shutdown will undoubtedly create short-term instability, but Flutter’s dominating market position will enable it to absorb Fox Bet’s clients.

Ongoing Setbacks Stifled Fox Bet’s Progress

Fox Bet first launched in 2019, combining Fox’s media and sports assets with Flutter’s expertise in sports betting to create a comprehensive online wagering service for American bettors. However, the platform failed to gain meaningful traction, falling to the wayside as other high-profile operators eroded its market share with more robust offerings and better promotional efforts.

A heated ownership dispute between Fox Corp. and Flutter Entertainment further exacerbated Fox Bet’s woes. The embattled operator is only available in four states, and its poor performance significantly hampered Fox’s plans to emerge as a market leader in the highly competitive sports betting industry. Such lack of direction and ambition placed it at a severe disadvantage, relegating it to relatively small-scale operations.

The success of FanDuel represented another nail in Fox Bet’s coffin. Flutter was unwilling to split its resources between two competing businesses, preferring to focus on its better-performing brand. While the decision made financial sense, it further widened the rift between Flutter and Fox, relegating Fox Bet to little more than a side project.

Fox and Flutter Will Refocus on Their Strengths

According to a recent Bloomberg report, the two companies may announce the shutdown as soon as 31 July. While industry insiders may have expected such a development, it came significantly earlier than most anticipated. Flutter’s position as parent company means FanDuel is well-positioned to seamlessly absorb Fox Bet’s user base, salvaging as much as possible from the failed operator.

Leaked information suggests Flutter will retain Fox Bet’s customer database and market-access agreements while Fox will keep its brand rights and the hard-fought option to buy an 18.6% stake in FanDuel. After the shutdown, the media giant can either focus on its traditional revenue streams or seek a new partnership. However, stiff competition means any new venture will face an uphill battle.

While the end of Fox Bet marks the conclusion of a short-lived joint venture, both companies can focus on their strengths and continue to play a significant role in shaping the future of the US sports betting market. Industry observers will closely monitor how the market responds to this development and whether it sparks further changes and realignments in the online wagering industry.