In a strategic decision, Flutter Entertainment and Fox Corporation have jointly declared the phased closure of the sports betting platform FOX Bet. This move marks a significant development in their collaborative ventures, signaling changes in their respective ownership and focus within the online betting landscape.
Closure Details:
Commencing on July 31, a carefully planned phased closure of FOX Bet’s operations is underway and is expected to conclude by August 31. This transition follows the decision to reevaluate and streamline their collaborative offerings in the sports betting sector.
Ownership Redistribution:
Flutter Entertainment, listed on the London Stock Exchange, will retain ownership of PokerStars, formerly part of The Stars Group US. Meanwhile, Fox Corporation will continue to hold the FOX Bet brand, including the popular FOX Bet Super 6 feature. A new FOX Super 6 game is also on the horizon, slated for launch later this summer.
Strategic Partnership:
Despite the closure of FOX Bet, Fox Corporation maintains its strategic partnership with Flutter Entertainment, retaining the option to acquire 18.6 per cent of Flutter’s FanDuel. This underscores their commitment to ongoing collaboration, albeit with a focus on specific areas aligned with their business objectives.
Financial Performance:
Flutter Entertainment’s Q1 financial results revealed a remarkable 46 per cent year-on-year increase in revenue, totaling £2.4 billion. The surge was propelled by a 61 per cent rise in sports betting revenue to £1.49 billion and a 44 per cent increase in iGaming revenue to £916 million. The positive trajectory is attributed to rapid growth in the US market and the expansion of Flutter’s international presence through strategic acquisitions.
Focus on FanDuel:
FanDuel, a key asset within Flutter Entertainment, reported impressive results, with revenue soaring by 92 per cent in the last quarter, reaching £908 million. The sportsbook revenue witnessed a remarkable uptick of 147 per cent. Flutter anticipates FanDuel to achieve profitability by the end of this year, reinforcing its strategic positioning in the US market.
The decision to close FOX Bet underscores the dynamic nature of the online betting industry and the strategic recalibration undertaken by industry leaders. As Flutter Entertainment shifts its focus towards enhancing the performance of FanDuel, this move is poised to optimize resources and pave the way for a streamlined and efficient operational landscape within the rapidly evolving online betting ecosystem.