Fox Remains Hopeful About Reviving FOX Bet, Discussed Possibilities with Gaming Firms
Only a few days have passed since FOX Bet shut down, and Fox Corporation's (NASDAQ: FOXA) CEO Lachlan Murdoch seems quite hopeful about the company's future chances in sports gaming. Murdoch mentioned that they've already discussed potential collaborations with yet-to-be-identified gaming firms.
During Wednesday's fiscal fourth-quarter earnings conference call, Murdoch discussed FOX Bet's downfall and possibilities for restarting it. He recognized that Fox hadn't provided capital for the brand but emphasized that it had gained value that could be used later.
"Let me make it clear what a fantastic result we have achieved and the value we've generated for all of our investors with FOX Bet," Murdoch remarked when asked by UBS analyst John Hodulik.
The CEO further explained that FOX Bet was wholly funded by Flutter Entertainment (OTC: PDYPY) and that Fox hadn't furnished any financial assistance to the struggling betting company.
On the conclusion of July 31, Flutter, being its prerogative, dissolved FOX Bet. However, Fox remains in control of the now-dead business.
FOX Bet Super Six Could Be Decisive
Murdoch pointed out that the diminution of FOX Bet was predictable. In retrospect, it was easily foreseeable for anyone closely monitoring the sports betting sector. For years, Flutter made no mystery of its prioritization of FanDuel over FOX Bet's decay.
The triumph of FanDuel as the biggest online sports betting operator in the U.S., along with its profitability, benefited the Irish firm greatly. By contrast, Fox is seeing opportunities to resurrect FOX Bet, such as utilizing the temporarily halted FOX Bet Super Six free-to-play game. This app provided competitions tied to collegiate sports, NASCAR, the NFL, and many more. It served as an efficient database driver for FOX Bet.
"The last remaining asset of worth arising from FOX Bet is the FOX Bet Super Six brand, which is the most successful free-to-play betting product in the United States. It also supplies a tremendous lead generator for betting sites in the future," stated Murdoch. "This is a brand and an operation that we'll continue to run."
In respect to FOX Bet Super Six's revival, Murdoch didn't offer any timelines. However, it's essential to note its NFL picks contest was popular, which might persuade Fox to revive the app before the 2023 season commences without it.
A Changing Media/Sports Betting Landscape
Murdoch's statements on how Fox can re-enter the U.S. sports betting market were made only a few hours before Penn Entertainment (NASDAQ: PENN) declared a massive partnership deal with Fox competitor ESPN.
Although not as massive as ESPN, Fox possesses a prominent sportcasting library. Its repertoire features coveted NFL rights, a vital part of college football broadcasting, and transmits parts of Major League Baseball and NASCAR events.
Whether that's sufficient for FOX Bet's rejuvenation remains uncertain. But Murdoch remains constructive about making it so.
"We're exceptionally pleased with FOX Bet's existing performance. We've built a massive quantity of value, and we're well-prepared to continue to profit from the rise of sports betting in the United States," he stated during the call.
