FOX Bet Shutting Down After Struggling to Get off the Ground

USA Legal Betting


  • FOX Bet launched in 2019 and was acquired by Flutter Entertainment in 2020
  • The “Big Four” sports betting operators are growing in authority
  • FOX Bet helped generate part of over $90 million in losses in 2022

Flutter Entertainment and the FOX Corporation announced the closure of legal sports betting platform FOX Bet Monday. 

“A phased closure of FOX Bet’s operations will take place between 31 July and 31 August 2023,” a press release confirmed. The decision comes after the sportsbook struggled to compete with other top powers in the American sports betting landscape such as FanDuel, DraftKings, and BetMGM

FOX Bet first began in 2019 and was acquired by Flutter in 2020 after the latter bought out The Star Group, which helped originally launch FOX Bet.

Stuck in first gear

Flutter is not completely exiting the American gambling space. It still has control over PokerStars and a majority stake of FanDuel, which holds about a 45% share of the online sports betting marketplace.

FOX will retain the rights to its brand and the option to purchase an 18.6% stake of FanDuel as part of the agreement.

According to Flutter, which is based in Dublin, Ireland, FOX Bet contributed less than 3% to its total 2023 American gaming revenue of $3.3 billion.

The decision was made in part after Flutter announced $313 million in operating losses in 2022 despite the overwhelming success of FanDuel. Flutter’s financial 2022 report showed that FOX Bet and PokerStars were responsible for over $90 million of the losses. 

In another vein, FanDuel is on track to become the first sports betting platform to achieve full profitability in all four quarters this year, which made the decision to let go of FOX Bet painless.

FOX and FanDuel have gone back and forth over the price required to purchase the 18.6% stake up it is entitled to. After going through arbitration, it was ruled that FOX will have to pay the fair market value for FanDuel as of December 2020, which was about $20 billion. That means that FOX will have to fork over about $4 billion to meet the prices.

Changes in the sports betting landscape

FOX Bet’s failure did not come without the best efforts of the namesake company, FOX. FS1 network shows and other sports broadcasts commonly referenced the platform as a source for betting odds and lines and encouraged customers to sign up for promotions. 

At the same time, the shortcomings are far from unprecedented in the sports betting landscape. Other companies such as MaximBet have been forced to shutter operations, and even leads such as FanDuel and DraftKings have been forced to cut costs, whether in the way of employee lay-offs, limited promotions, or other frugal-focused efforts.

Regardless of the reasoning, another competitor is off the board. That will help the “Big Four” operators—the largest corporations in sports betting—solidify their ever-increasing grasp on the market.

If there is going to be a new company to challenge any of the industry leaders for position, it appears to be Fanatics. The company recently acquired PointsBet’s North American assets for $225 million and has opened or is preparing to open multiple retail sportsbooks across the country. 

One of those retail locations is at FedEx Field, home of the Washington Commanders, who were recently sold to a group led by Josh Harris, Ervin “Magic” Johnson, and others. Fanatics appears ready to heavily invest in the sports betting space after amassing an impressive catalog of trading cards (via an acquisition of Topps), online memorabilia, and other collectibles.

Grant is a sports and sports betting journalist who prides himself in his up-to-the-minute reporting on the latest events in the industry. A member of Virginia Tech’s 2021 graduating class, he has quickly put together an impressive portfolio since moving to the professional world full-time. Grant’s favorite sports to cover are basketball and both types of football (American and soccer), and he is pushing written, audio, and video content. He has been employed by companies as highly regarded as Forbes and continues on a great trajectory in the industry. When he’s not on the clock, you can find Grant at the gym, looking for adventures, or hanging out with his family.