1. Main
  2. News Corp Could Face Big Near-Term Decision on FOX Bet

News Corp Could Face Big Near-Term Decision on FOX Bet

Tiffany Burroughs
Updated: 2 August 2023
2 min to read

News Corp (NASDAQ: NWSA) is close to making an influential choice regarding FOX Bet, which could decide the destiny of the online sportsbook.
Fox Bet

At a conference in New York in 2018, Lachlan Murdoch, CEO of Fox Corp. (NASDAQ: FOXA), outlined the potential ramifications of an imminent decision regarding the future of the FOX Bet gaming entity; should Dublin-based Flutter Entertainment (OTC: PDYPY) decide to leave FOX Bet in August, News Corp will have to take control of the company or let it go. Flutter has yet to publicly comment on their intentions, but with the company owning 95% of popular US online sportsbook FanDuel and having openly expressed their discontent with Fox Bet’s lack of US market share, leaving the entity behind remains a viable option. News Corp. has disputed this, claiming Flutter has not provided Fox Bet with the necessary resources to compete. This, however, was rejected last November by the Judicial Arbitration and Mediation Services in New York, as Fox Bet today stands live only in four states and has less than 1% share of the US market, according to the Australian Financial Review.

News Corp has come to a decision regarding the future of the small sportsbook operator, now they must figure out how to “outsort” the company.

News Corp Has Outs … Sort Of

In 2020, the Stars Group (TSG) acquisition by Flutter for $12.2 billion allowed FOX Bet and PokerStars to become a part of the Flutter fold. This transaction made Flutter the largest online gaming operator in the world, and it had been arranged by Lachlan Murdoch with the intent of leveraging sports broadcasting rights, like the NFL, for FOX Bet. Murdoch didn’t want News Corp to be responsible for taking bets, which made Flutter an attractive option. Unfortunately, the FanDuel company is doing very well, while FOX Bet has been left lagging. Now, News Corp might have to put some financial effort into FOX Bet, after unsuccessful investments with Betr in its birthplace. If Flutter desires to let go of FOX Bet, News Corp has some options.

If Flutter chooses to end its relationship with FOX Bet, the News Corp subsidiary, it could still come away with something. This could include capital to further its own brand viability or a potential buyer or partner. As part of the arrangement, News Corp plans to list its shares on the New York Stock Exchange later this year. Although the company has made no official comment about this, it is possible that this could be part of a strategy in anticipation of the listing.

News Corp Not Going Away Empty Handed

Although the future for FOX Bet may be uncertain, News Corp will not be too adversely affected due to JAMS’s confirmation of their rights to acquire up to 18.6% of FanDuel. Given that FanDuel is a lucrative business speculated to be valued at around $22 billion, this could provide a strong return for News Corp. What’s more, News Corp is one of Flutter’s biggest shareholders, so it stands to gain from their success.

Lorem image
Updated: 2 August 2023
2 min to read

The professional casino player, author of books and articles about gambling, creator of gaming content. I study this field and am happy to share my knowledge and skills acquired over the years with everyone