The news of a possible closure could come as soon as Monday, July 31. After many years of struggling to compete in the increasingly crowded US and New Jersey sports betting market, FOX Bet will likely be leaving the sports betting industry.
FOX Bet opened its doors in New Jersey in 2019 in a partnership between FOX and The Stars Group, which Flutter later purchased in October 2019.
The hope was that FOX Bet could rival the likes of FanDuel and DraftKings, but that didn’t happen, and the company was forced to close its doors.
FOX said closing FOX Bet in New Jersey was “difficult, but we believe it is the best decision for our shareholders and customers.” The company said it would work with Flutter to transition FOX Bet’s customers to other Flutter-owned brands, such as FanDuel.
Flutter CEO Peter Jackson said closing FOX Bet was “a strategic decision” to let the company “focus on our core brands.” Jackson added that Flutter was “committed to the New Jersey sports betting market” and would continue investing in its other brands, including FanDuel.
Flutter keeps the customer database and all marketing agreements associated with FOX Bet, while FOX is expected to retain rights to the FOX Bet brand and the related Super 6 promotion. FOX will also keep its option to acquire an 18.6% stake in the FanDuel brand.
FOX Bet winding down its time in New Jersey is the latest sign of smaller companies being unable to compete with bookmaking powerhouses FanDuel, DraftKings, Caesars, and BetMGM.
What Does This Mean for New Jersey Bettors?
FOX Bet could possibly be closing its doors as soon as August 1, so Garden State sports bettors should also consider closing their betting accounts and withdrawing any funds from them.
It also means the sports betting landscape is changing, with less profitable companies like FOX Bet and PlayUp Sportsbook shutting down because they can’t compete against the big New Jersey sportsbooks that are already established.