Flutter to wind down sports betting platform Fox Bet over next month
Flutter Entertainment and Fox Corporation have announced the closure of sports betting platform Fox Bet.
The gambling giant, which owns Paddy Power Betfair, said a phased closure of Fox Bet’s operations will take place between now and August 31st.
Flutter operated Fox Bet as part of The Stars Group US along with the US facing operations of PokerStars.
Flutter will retain ownership of PokerStars, in addition to US sports betting market leader FanDuel. Fox will retain future use of the Fox and Fox Bet brands, including Fox Bet Super 6, and intends to launch an all new Fox Super 6 game later this summer.
Fox will continue to hold its option to acquire 18.6 per cent of FanDuel and in addition holds a 2.5 per cent stake in Flutter.
Results published in May show revenue at Fluter rose 54 per cent to more than €2.7 billion in the first three months of the year.
The Irish betting giant said the average number of people betting regularly on its website rose 30 per cent to 12.3 million a month in the first quarter.
Flutter reported that revenue grew 54 per cent to £2.41 billion (€2.73 billion) in the three months ended March 31st, 2023, from £1.57 billion during the same period last year.
Revenue in its US business almost doubled, increasing 92 per cent to £908 million in the first quarter from £429 million during the opening three months of 2022.
The Dublin-headquartered group said the US remained “firmly on track” for full-year profitability in 2023.
Flutter expects Kentucky, home of North America’s best-known horse race, the Kentucky Derby, and North Carolina, to legalise online sports in coming months.
Ohio and Massachusetts opened this year, adding 20 per cent to regular customers, which grew overall 46 per cent to 3.45 million.
Digital sports betting began in the US only five years ago following a federal supreme court ruling lifting bans on the practice.
Flutter has spent heavily developing the business through its main US subsidiary, FanDuel. The group plans to take a secondary stock market listing in New York by the end of the year.
