FuboTV Inc. said. , a television broadcasting platform, said on Monday it was closing its new sportsbook online.
Fubo Sportsbook online is organized in Arizona, New Jersey and Iowa. Sports betting is legal in over 30 states across the United States
The Vigtory sportsbook app, which later became Fubo Sportsbook, was sold to Fubo for an undisclosed amount in 2021.
“The company has now completed a previously announced strategic review of the Fubo Gaming business,” the company said in a press release. While several parties have expressed interest in the business, none of these opportunities could have allowed Fubo to reduce its financing requirements and generate sufficient returns for shareholders. As a result, FuboTV will close its Fubo Gaming subsidiary and immediately cease operation of its owned and operated Fubo Sportsbook.”
This announcement was part of the company’s report on its preliminary results for the third quarter of 2022.
Sports betting is a very competitive industry, with Fubo Sportsbook having to compete against the likes of FanDuel, DraftKings and BetMGM, which hold the majority of the market share.
David Gandler, co-founder and . said: Executive Director. “We expect strong revenue and subscriber growth in the third quarter, exceeding our previously issued guidance in North America, on the back of a highly competitive operating environment. We are pleased with this projected performance and our progress toward achieving our positive cash flow target in 2025.”
“Following our previously announced strategic review, we concluded that continuing with Fubo Gaming and Fubo Sportsbook in this challenging macroeconomic environment will impact our ability to achieve our long-term profitability goals. Therefore, we have made the difficult decision to exit the online sports betting business effective at We look forward to providing more color, as well as discussing our full third-quarter 2022 results and full-year outlook, on our November 4 earnings call.”
The company expects to close the third quarter of 2022 with revenue in North America of at least $210 million, an increase of approximately 34% year over year.