DraftKings and Flutter Entertainment stocks plummeted as the NCAA announced plans to ban prop bets in college sports, citing concerns about the integrity of the game and student athletes' protection. This comes amid a series of scandals and federal scrutiny in the sports betting and online gambling industry, including investigations into betting irregularities involving NBA player Jontay Porter and a federal probe into online gambling VIP programs. Additionally, federal lawmakers are targeting online betting's targeting of big spenders and VIPs, with Sen. Richard Blumenthal urging companies to stop using player data to target customers with gambling problems, and Rep. Paul Tonko working on legislation for federal oversight of online sports betting in legalized states.
Flutter Entertainment, owner of FanDuel, is set to list in New York as it capitalizes on the US online sports betting boom, with sales in the US surging from £191m in 2018 to £3.6bn last year. The company sees a long runway for future growth but acknowledges concerns around problem gambling influencing future regulation. Despite bullish outlooks from analysts and the industry's pushback against potential regulations, Flutter remains cautious about the impact of social responsibility concerns on its reputation and operations.
Fox Corp is shutting down its Fox Bet betting service, which it launched in partnership with FanDuel owner Flutter Entertainment four years ago. The shutdown will be completed by the end of August. Fox will retain the Fox Bet brands, while Flutter will keep the customer database and licenses. Fox will launch a new game called Fox Super 6 later this summer. The decision to shut down Fox Bet comes after Fox was given a 10-year option to acquire 18.6 percent of FanDuel for $3.7 billion.
Flutter Entertainment and Fox Corporation have announced the closure of sports betting platform FOX Bet, with a phased closure taking place between July and August 2023. Flutter will retain ownership of PokerStars and FanDuel, while Fox will retain the rights to the FOX and FOX Bet brands and plans to launch a new game called FOX Super 6. Fox also holds a 2.5% stake in Flutter and has the option to acquire 18.6% of FanDuel.
