FOX Bet faces $80k New Jersey penalty before closure

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The New Jersey Division of Gaming Enforcement has levied an $80,000 penalty on FOX Bet just days before the platform is closed down.

Resolving an issue dating back two years, the regulator has ordered the Flutter and FOX brand to pay the penalty after offering wagering on prohibited sporting events.

Specifically, FOX Bet offered sports betting on college sports events that were not allowed in the Garden State. On August 19, 2021, the regulator filed a complaint after FOX Bet allowed betting on the February 2021 NCAA basketball match between Rutgers University and Northwestern University

A further filing was made when bets were placed on the NCAA game between Monmouth University and Lehigh University that November. FOX Bet then admitted further breaches on New Year’s Eve 2021 when it took wagers on the game between Fairleigh Dickinson University and St. Francis University and again on two more fixtures in January 2022. 

Following discussions that have taken place over the past 18 months and the submission of legal documents, the NJDGE Director David Rebuck ordered the $80k penalty to be paid by TSG Interactive US Services, the holding company of FOX Bet. 

It comes as the platform is set to close down on August 31, following an announcement from Flutter and FOX at the end of July. The closure has been phased throughout the month but the platform is no longer accepting bets and is urging all users to delete the app from September 1 as it will no longer be accessible. 

A statement from Flutter read: “Flutter Entertainment and FOX Corporation, announce today the decision to close sports betting platform FOX Bet. A phased closure of Fox Bet’s operations will take place between 31 July and 31 August 2023.

“Flutter operated FOX Bet as part of The Stars Group US along with the US-facing operations of PokerStars. Flutter will retain ownership of PokerStars, in addition to US sports betting market leader FanDuel. FOX will retain future use of the FOX and FOX Bet brands, including FOX Bet Super 6, and intends to launch an all-new FOX Super 6 game later this summer.”