News Corp’s into online betting has been a rollercoaster ride of triumphs and hurdles. Spearheaded by the determined Lachlan Murdoch, the media giant made a bold entrance into the market with its platform, Betr. However, recent reports have revealed significant financial setbacks, leaving many questioning the resilience of Lachlan’s betting empire.
The introduction of Fox Bet marked a pivotal moment in News Corp’s venture into the betting industry. Lachlan struck a deal with The Stars Group (TSG) to establish Fox Bet as a joint venture, leveraging the influence of Fox Sports coverage to create a robust sports betting platform. Lachlan’s personal investment in the project underscored his steadfast belief in its potential. Nevertheless, critics wasted no time pointing out some glaring flaws in Fox Bet’s technology that could potentially impede its growth prospects.
News Corp’s betting aspirations have been plagued by financial woes, with an estimated pre-tax loss of approximately $70 million in Australian dollars. To compound matters, News Corp reported a $US33 million equity loss from affiliates in the December half-year, followed by an additional $US10 million loss in the March quarter. These staggering figures vividly illustrate the formidable challenges faced by the company in the fiercely competitive betting market.
While Fox Bet struggled to gain traction, its formidable competitor, FanDuel, swooped in and claimed a dominant share of the US online betting market. FanDuel’s meteoric rise prompted Flutter, the parent company of FanDuel, to acquire The Stars Group, effectively gaining control of Fox Bet. Adding fuel to the fire, Flutter now possesses a valid 10-year option to purchase 18.6% of FanDuel, intensifying the rivalry between the two platforms.
With only limited availability in four states, Fox Bet has failed to make a significant impact, capturing less than 1% of the US market. This uncertain future raises doubts about whether Fox Bet can weather the storm or face imminent cancellation. Lachlan Murdoch now finds himself at a crossroads, grappling with tough decisions about the future of News Corp’s betting empire.
To compound News Corp’s troubles, the Judicial Arbitration and Mediation Services dealt another blow by rejecting Fox’s claim, suggesting that Flutter may have favored FanDuel over Fox Bet. This decision further complicates the already strained dynamics between the two platforms, potentially influencing their future relationship.
Amidst this tumultuous landscape, a sliding option deal emerged, valuing FanDuel at a staggering $US22 billion. This valuation serves as a stark reminder of the immense profitability that a successful betting platform can bring. However, the burning question remains: can Fox Bet seize this opportunity to reverse its fortunes?