Four years after becoming the first major media company to launch its own branded betting offering, Fox Corp. is pulling back in the space.
Fox and its partner, FanDuel owner Flutter Entertainment, said they will shut down the Fox Bet service four years after it launched. The closure will take place in phases, but will be complete by the end of August.
Fox entered the betting space in 2019, a year after the US Supreme Court opened the door to legalized sports betting in Murphy vs. NCAA. Fox Bet offered both free games (called Fox Bet Super 6), which it offered nationwide, and sought gaming licenses, which it received in Colorado, New Jersey, Michigan, and Pennsylvania.
Fox initially partnered with The Stars Group to launch the service, though when The Stars Group was acquired by FanDuel owner Flutter (with the help in part of Fox), it led to a lengthy arbitration between Flutter and Fox over the option of the media company to acquire a larger stake. in the betting company. The arbitration was completed last year, and Fox was given a 10-year option to acquire 18.6 percent of FanDuel for $3.7 billion.
Flutter will retain Fox Bet’s customer database and licenses, while Fox will retain the Fox Bet brands, including the Fox Bet Super 6 brand.
Fox will “release a new Fox Super 6 game later this summer,” according to the companies. It is not clear what the new game will be, given the separation of the online gambling business.
Company executives, including chief executive Lachlan Murdoch, had long touted the potential of sports betting for their lines of business, particularly the obvious connection to its Fox Sports division. However, the option to acquire the stake in FanDuel gives the company economic exposure to one of the biggest players in the space, even if it means it will no longer offer its own branding option.