In 2012, the attraction was removed from the Florida theme park to make room for the second phase of expansion for The Wizarding World of Harry Potter. The former entrance to Jaws at Universal Studios Florida, which was a popular photo spot in the park.

Universal Studios Florida permanently closed the Jaws attraction on January 2, 2012, primarily to make room for the massive expansion of The Wizarding World of Harry Potter—Diagon Alley. While the ride was a fan favorite, it occupied a significant amount of "real estate" (the Amity Island area) that was needed for the highly lucrative Potter franchise. Beyond the need for space, the ride was notoriously expensive and difficult to maintain. Since its disastrous opening in 1990—which led Universal to sue the original designers for a faulty ride system—the attraction suffered from frequent mechanical breakdowns due to its complex underwater animatronics and pyrotechnic effects. Additionally, the rising cost of the natural gas and petroleum required to power the massive fire effects and the tour boats made the attraction's operating costs prohibitively high compared to newer, more efficient digital and screen-based rides. Today, Diagon Alley stands in its place, though Universal left several "Easter eggs" (like a shark jaw in a window) to honor the legendary Bruce the Shark.