A business decision
FuboTV is closing down its online sportsbook operations in the US with immediate effect. The streaming service provider announced in a Securities and Exchange Commission (SEC) filing on Monday that it is shutting down the Fubo Gaming subsidiary that was operating the Fubo Sportsbook. The announcement came as FuboTV reported its third-quarter preliminary financial results.
continuing to operate the sportsbook independently in the current economic climate was not viable
The decision to end the sports betting operations comes following a strategic review of the wagering business, which began in August. The company hopes to be profitable by 2025, but believes that continuing to operate the sportsbook independently in the current economic climate was not viable.
FuboTV did have some interest from several parties in the sports betting business, but these potential partnership opportunities would not have decreased FuboTV’s funding requirements for the operation or generated adequate returns for its shareholders.
More details to come
There will be some costs associated with shutting down the online betting operations, including various employee-related costs like severance. It also will have to deal with charges for terminating certain contracts and market access agreements. Further details about the shutdown will be provided during an earnings call on November 4.
FuboTV CEO and co-founder David Gandler did note that closing the sportsbook was a difficult decision, but that continuing operations would impact the company’s ability to reach its long-term profitability targets.
Only live in a few states
The hope was that Fubo Sportsbook would help FuboTV generate extra profits from its subscribers. The Fubo Sportsbook was only up and running in Iowa, Arizona, and New Jersey. There were plans to launch soon in Pennsylvania and Indiana.
first Fubo Sportsbook platform went live in November 2021
It only officially launched in New Jersey in early September, including opening a Fubo Sportsbook lounge at the New York Jets’ MetLife Stadium. The first Fubo Sportsbook platform went live in November 2021 with a launch in Iowa. It was the first online sportsbook to integrate with an owner-operated live television streaming service. In competitive markets, Fubo Sportsbook’s results in both Arizona and Iowa were unimpressive.
One of the main features of the Fubo Sportsbook was that its app would sync automatically to whatever live sports action a person was watching on FuboTV. Some of the sportsbook’s partners included NASCAR, the aforementioned New York Jets, and the Cleveland Cavaliers.
