Fox Corp is making a significant move in the betting space as it shuts down its Fox Bet service, which it launched in partnership with FanDuel owner Flutter Entertainment four years ago. The shutdown will occur in phases and will be completed by the end of August.
In 2019, Fox entered the betting space, following the legalization of sports betting in the United States. The U.S. Supreme Court’s ruling in Murphy vs. NCAA opened up opportunities for media companies to venture into the betting market. Fox Bet offered a range of free games known as Fox Bet Super 6, which catered to nationwide audiences. Additionally, the company sought gambling licenses, which it successfully obtained in Colorado, New Jersey, Michigan, and Pennsylvania.
Initially, Fox partnered with The Stars Group to launch the service. However, when The Stars Group was acquired by FanDuel owner Flutter Entertainment, a dispute arose concerning Fox’s option to acquire a larger stake in the betting company. This issue led to a lengthy arbitration process between Flutter and Fox, and a resolution was reached last year. As a result, Fox was granted a 10-year option to acquire 18.6 percent of FanDuel for $3.7 billion.
As part of the shutdown of Fox Bet, Flutter will retain the customer database and licenses, while Fox will hold on to the Fox Bet brand, including the Fox Bet Super 6 name. Fox has plans to launch a new game called Fox Super 6 later this summer, though details about the game have not been disclosed.
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Fox had high hopes for the potential of sports betting in its business lines, particularly due to its connection to its Fox Sports division. While the closure of Fox Bet means that the company will no longer offer its own branded option, the option to acquire a stake in FanDuel provides economic exposure to one of the biggest players in the sports betting space.
The decision to shut down Fox Bet raises questions about the future of Fox’s involvement in the betting industry. With the closure of its branded betting service, the focus may shift to strategic partnerships and collaborations with established players in the market. This move aligns with the broader trend of media companies exploring opportunities in the sports betting space, as they look to leverage their existing content and viewership to tap into this lucrative market.
The betting industry has experienced significant growth in recent years, driven by changing regulations and increasing consumer interest. Media companies are keen to leverage this growth and capitalize on the potential revenue streams that sports betting offers. The strategic partnerships and acquisitions in the industry indicate a strong belief in the long-term prospects of the betting market.
As Fox moves forward with its new game, Fox Super 6, it will be interesting to see how the company evolves its approach to the betting industry. This new game could potentially leverage the loyal viewership of Fox Sports and offer an engaging experience for users. While the details are currently unknown, it is clear that Fox is committed to exploring opportunities in the evolving betting landscape.
In conclusion, Fox Corp’s decision to shut down its Fox Bet service marks a significant shift in its approach to the betting industry. The closure comes after a partnership dispute, which resulted in Fox obtaining an option to acquire a stake in FanDuel. While Fox Bet will be discontinued, the company plans to launch a new game called Fox Super 6 later this summer. This move reflects the continued interest of media companies in exploring opportunities in the sports betting space. With the industry experiencing significant growth, strategic partnerships and new offerings are expected to shape the future of the betting market.
