Fox Bet, one of the most established names in the online sports betting industry in New Jersey, has been in the process of winding down operations for a while now. However, its plans to exit the New Jersey gambling market recently hit a snag thanks to a final note of contention.
As Fox Bet prepares to close its business, this fine underscores the strict regulatory environment surrounding sports betting in New Jersey. The Garden State’s journey in the sports betting world has indeed been nothing short of remarkable. Not only has the state embraced iGaming in all its forms, but has also set the gold standards as far as regulatory rigor and consumer protection are concerned.
The state’s strict regulations have been critical in establishing New Jersey as a blueprint for other states seeking to legalize and regulate sports betting. One of the key components of New Jersey’s success story has been its unwavering commitment to maintaining the integrity of sports betting. The state’s Division of Gaming Enforcement has continuously enforced strict rules to make sure that all operators adhere to the law and that punters are protected.
New Jersey’s strict regulations fine Fox Bet before exit
The Division of Gaming Enforcement in New Jersey not too long ago imposed a fine on Flutter Entertainment/ The Stars Group, Fox Bet’s parent company, worth $80,000. This penalty was issued for allowing bets on prohibited events, specifically college basketball games involving schools in New Jersey.
The Garden State has strict rules in place to prevent residents from gambling on college athletics, particularly in-state colleges or any collegiate events that are organized in New Jersey. However, according to investigations carried out by the DGE, Fox Bet had committed this violation on several occasions.
DGE found that Fox Bet had accepted bets on 4 college basketball games involving schools from New Jersey. The games in question include:
- Rutgers University vs. Northwestern University. This game was held on February 13, 2021.
- Monmouth University vs. Leigh University, whose game took place on November 16, 2021.
- Fairleigh Dickinson University vs. St. Francis University, whose event was scheduled for December 31, 2021.
- And finally Seton Hall University vs. University of Connecticut, which unfolded early last year on January 8th, 2022.
New Jersey’s rule regarding betting on in-state colleges or any collegiate events in the state was created to maintain the integrity of college sports, as well as prevent any possible conflicts of interest. The Garden State is just one of a dozen states with legal sports betting that enforces bans on gambling on college athletics.
This means that sports books in New Jersey cannot accept bets from tournaments or any regional competitions. In essence, this rule helped to ensure fairness and transparency in college sports while safeguarding the interests of both the institutions in question, as well as the athletes.
The decision to uphold these restrictions that prevent sportsbooks from accepting collegiate wagers is rooted in the state’s history. In 2021, a proposal to allow gambling on college sports teams in the state was rejected by voters. Backers of this proposal had intended to help the state maintain its national leadership of the market in the US.
According to proponents, New Jersey was losing out on wagers involving popular New Jersey college teams that sportsbooks in other states are permitted to participate in. However, a potential concern with lifting the ban was that college athletes would start to feel more pressure and face more scrutiny owing to the added attention and money involved.
As such, the state’s voters decided to uphold the ban. Fox Bet’s option to go against the rules and accept wagers on prohibited events, as highlighted by the $80,000 fine, serves as a stark reminder that even in a dynamic and rapidly growing industry, regulatory compliance should never take a back seat.
The DGE’s decision underscores the principle that no sportsbook, regardless of its stature or market presence is above the law in the Garden State. Thus unwavering commitment to enforcing regulations has been a driving force behind the state’s success in the sports betting world. The fine levied against Fox Bet was not an isolated incident but rather part of a broader regulatory framework prioritizing fairness, consumer protection, as well as transparency.
Fox Bet’s imminent exist and the future of the brand
While Fox Bet may be shutting down its operations, it should be noted that the brand is far from disappearing. Fox Bet originally debuted operations in 2019 thanks to a collaboration between Fox Corporation and the Stars Group, which Flutter Entertainment acquired in 2020. Flutter Entertainment also controls FanDuel Sportsbook, one of the biggest players in the country’s sports betting market.
Negotiations between FanDuel and Fox have been ongoing with Fox expected to maintain its option to acquire 18.6% of FanDuel having successfully secured a stake of 2.5% in Flutter. This strategic move implies that Fox is still very keen on staying linked to the growing sports betting industry.
Additionally, Fox Corp will retain the rights to use the Fox and Fox Bet brands, including Fox Bet Super 6. Fox recently announced new plans to debut an all-new Fox Super 6 game later this summer, further emphasizing the brand’s commitment to remaining a part of the exciting industry.
Fox Bet has until August 31st to leave the scene. Users will have the option to access their existing funds through the Pokerstars casino app. Once operations shut down, it will mark the end of an era for the Fox Bet brand in New Jersey.
Fox Bet’s exit from the New Jersey market comes with a fine worth $80,000 imposed by regulators in the state. This fine highlights the strict regulations governing sports betting in New Jersey. While this brings Fox Bet’s involvement in New Jersey to a halt, the good news is that the brand still has strategic plans that suggest it has not given up its ambitions in the country’s sprawling market.