Flutter Entertainment has revealed that it will wind down the FOX Bet brand in the US over the next month.
Flutter Entertainment has revealed that it will wind down the FOX Bet brand in the US over the next month.
The brand was established via a partnership between Fox Corporation and PokerStars owner The Stars Group (TSG) in 2019.
Ownership of the brand was subsequently passed to Flutter when the operator merged with TSG in 2020.
Despite inheriting the FOX Bet brand as part of the merger, Flutter has repeatedly made clear that its eggs are firmly in the FanDuel basket when it comes to US sports betting.
The brand is live in Colorado, Michigan, New Jersey and Pennsylvania, but has failed to carve out a significant share of any of those markets.
The brand is now expected to cease operations by 31 August.
Fox Corporation will retain the rights to future use of the FOX Bet brand, as well as the FOX Bet Super 6 game brand. It intends to launch an all-new FOX Super 6 game later this year.
Fox’s FanDuel option
Fox also remains a 2.5% shareholder in Flutter, and continues to hold a previously agreed option to acquire an 18.6% stake in FanDuel.
That option has been the cause of significant strain between Flutter and Fox, as the firms had a disagreement over the price Fox would pay to exercise the option.
An arbitration process between the companies began in 2021, and the arbitrator ruled last year that Fox’s options would be based on the fair market value of FanDuel in December 2020, at $20bn.
To exercise the option, Fox will need to be licensed and will have to pay up in full and in cash. If it is not exercised within the determined timeframe (by December 2030), the option will lapse.