Fox Bet slapped with $80,000 New Jersey fine over college betting breach
Soon-to-close sportsbook punished for four offences in new Division of Gaming Enforcement order
Fox Bet, which is set to close later this month, has been given a parting gift by the New Jersey Division of Gaming Enforcement (DGE) in the form of an $80,000 fine for historical college betting breaches.
The Garden State regulator ordered the fine on Friday (August 18), relating to four historical offences in which the operator was found to have taken bets on in-state college sports.
In February 2021, the DGE filed a complaint against Fox Bet alleging it had accepted bets on a college basketball game between Rutgers and Northwestern, in breach of existing legislation and something the operator later admitted to.
Under New Jersey laws, residents are prohibited from placing bets on matches involving in-state teams, with any sportsbook found to have taken bets on these games similarly culpable.
Later in 2022, the state filed a second complaint against Fox Bet over alleged betting on a Monmouth University basketball game against Lehigh on November 16, 2021.
Two more complaints were subsequently filed relating to additional betting breaches on college games; one being the game between Fairleigh Dickinson and St Francis on December 31, 2021 and the other being Seton Hall’s game against the University of Connecticut on January 8, 2022.
In all cases, Fox Bet has admitted taking the bets identified by the DGE.
Launched in 2019 by the now defunct The Stars Group (TSG) business on a joint venture basis with Fox, Flutter absorbed the brand when it took over TSG in May 2020, with it functioning as part of the firm’s US division.
Fox Bet has been slow to roll out across the US, with product issues predominantly the cause, and despite the migration of the brand to the Paddy Power Betfair proprietary technology platform in 2021, the brand has struggled.
In addition, Flutter has traditionally favored its FanDuel brand over the Fox Bet business, a favoritism which has only been compounded by the US sportsbook’s consistent revenue growth.
FanDuel’s sportsbook is live in 19 US states, compared to just four for Fox Bet. FanDuel is the market leader for sports betting in the US, operating with a market share of more than 50%.
Last month, owners Flutter Entertainment and Fox Corporation confirmed the brand would close on a phased basis between July 31 and August 31.
Following the closure, Fox will retain future use of the Fox and Fox Bet brands, including Fox Bet Super 6, and intends to launch an all-new version of the Fox Super 6 game later this summer.