Flutter Entertainment, along with Fox Corporation, has come out with their official declaration that they will be shutting down the shutters of FOX Bet. As per a press release, the closure of all operations related to FOX Bet will be carried out in a phased manner. The timeline they have perceived for the complete shutdown will be by the 31st of August, 2023. Incidentally, FOX Bet is a U.S.-based sports betting platform.
According to the betting news, Flutter, which is a European-based organization, is known to be the biggest online betting company globally. FanDuel, which is a top U.S.-based company in sports betting, is also owned by Flutter Entertainment. Through a statement issued by the company, they have mentioned the fact that FOX Bet was responsible for less than 3% of the revenue generated in the U.S., the total amounting to $3.3 billion in the year gone by.
The plan for shutting down FOX Bet stems from the fact that Flutter has decided to turn the company around and start generating profits in 2023. This is following a loss to the tune of $313 million that they incurred in the U.S. in 2022. If this is made possible, Flutter will turn out to be the only sports betting company in the U.S. to make a profit ever since the prohibition on sports betting was done away with in 2018.
As per Flutter’s financial statement, FOX Bet and PokerStars were responsible for the loss of $91 million. According to the CEO of Flutter, Peter Jackson, with the shutting down of FOX Bet, it will be possible for them to recover almost half the losses. However, Fox will remain in line with the FOX and FOX Bet brands. Fox will be holding onto a 2.5% share in Flutter and will have the choice of acquiring 18.6% of FanDuel. Fox had initially associated with The Stars Group (TSG), which is an online gambling company, in 2019, for the deliverance of FOX Bet. Following that, Flutter inked a deal to take over The Stars Group.