Launched in 2019, Fox Bet was created in partnership with The Stars Group, a Canadian operator subsequently acquired by Flutter Entertainment in 2020.
It’s this acquisition that has hindered the growth of Fox Bet, according to the executive, with Irish operator Flutter at odds with Fox Corp over how the business should be run. There is also a potential conflict of interest at work, considering Flutter’s ownership of FanDuel, one of the largest operators in North America.
Lachlan Murdoch, CEO and Executive Chairman, Fox Corp, commented: “We don’t control it, because we’re not allowed to. It’s only rolled out in four states, which we’re disappointed in, and we’d like to see it rolled out in many more.”
While FanDuel has a market share of 40% in the US sports betting industry, outside of Nevada, Fox Bet has less than 1%.
Despite the rapid growth of sports betting in the US, with 30 states now offering legal wagering options, Fox Bet continues to lag behind, operating in just four.
The two companies are headed for court arbitration later this year, to resolve the ongoing issues of Fox Bet’s ownership and share options.
As part of Flutter’s acquisition of The Stars Group, Fox Corp has the option to purchase 50% of Fox Bet, as well as an option to acquire 18.6% of FanDuel. The reason for the prolonged battle relates to valuation; neither party can agree on a share price for either of these deals.
Peter Jackson, CEO, Flutter Entertainment, said: “If we can’t get the deal that’s right for our shareholders, we’re very comfortable going to arbitration.”
