What will Fox Bet’s exit from sports betting do to the US market?
August 7, 2023

After rumors started swirling around about the impending demise of Fox Bet, parent companies Flutter Entertainment and Fox Corp confirmed its closure on July 31. But what will Fox Bet’s closure do to the US sports betting industry, which has already seen a handful of brands fold recently?

To truly understand whether Fox Bet’s exit will make a wave, let’s take a closer look at its history and performance since its inception.

How did Fox Bet get started?

FOX Bet started in 2019 when Fox Corp partnered with a Canadian firm, The Stars Group. This partnership launched the brand “Fox Bet.”

Then, in 2020, Dublin-based Flutter Entertainment acquired The Stars Group. This acquisition gave Flutter a stake in Fox Bet, placing them in partnership with Fox Bet to run the brand. Flutter and Fox’s collaboration would continue until July 2023, when both companies announced the brand’s closure.

How has Fox Bet performed economically throughout the years?

There’s no denying that the American sports betting market has grown exponentially since the sports betting ban was lifted in 2018. Bookkeepers who entered the market should have seen steady growth throughout the years as more and more states opened their markets.

However, Fox Bet has yet to make any significant impact in the US sports betting market. It commanded less than one percent of the market. Numerically speaking, that’s less than $75 million in profits – a seemingly massive number on its own but dwarfed by the fact that the entire market earned $7.56 billion in 2022.

Why are Flutter Entertainment and Fox Corp. shutting down the brand?

Fox Bet failing to garner over one percent market share wasn’t the brand’s only concern. It also acquired nearly $50 million in losses just in 2022 alone. Considering Flutter’s total losses last year were over $300 million, it’s unsurprising to see them close the brand that contributed to one-sixth of their profit loss.

Flutter CEO Peter Jackson was even quoted as saying that the company would shed about “half to two-thirds” of their non-FanDuel losses if Fox Bet were to close. Jackson made that statement during an earnings call in March 2023, and it seems his words came to fruition.

What’s next for the US sports betting market after this closure?

Looking at the bigger picture, the US sports betting market will continue as it is currently, even after Fox Bet completes its phased closure on August 31. The brand failed to become a household name and joined the list of other sports betting brands that didn’t capture a chunk of the US market.

However, Fox Bet’s closure does mean that the list of major market players solidifies even further. Currently, two major names are competing for dominance – FanDuel and DraftKings. As more and more bookkeepers fold under pressure, there are fewer hurdles for FanDuel and DraftKings to overcome on their way to the top.

It won’t be surprising to see if, one day, FanDuel and DraftKings will become too large to challenge in the American sports betting market. Fox Bet’s closure brings us one step closer to that reality.