Streaming provider FuboTV is backing away from its plans to offer an integrated gambling service. [Image: Shutterstock.com]
The news comes even though Fubo posted 41% year-over-year growth, with 946,735 signups at the end of the second quarter. The number of international sponsors in France and Spain also exceeded 347,000. North American revenue increased 65% to $216.1 million, and international revenue was $5.8 million.
However, Fubo CEO David Gandler and Chairman Edgar Bronfman Jr. noted that the company’s impressive numbers “have been pressured primarily by the poor performance of certain sports content during the typically low growth portion of the year.”
FuboTV leaves gambling quickly
Fubo first announced its plan to join the betting market in mid-June. Gambling service launched in Iowa and Arizona; She planned to expand to other states during the football season.
All that was required of the fans was to scan the QR code, and then redirect them to the Fubo sportsbook. Fans in states outside of Arizona and Iowa can still compete for points on an unprofitable leaderboard.
A letter to shareholders cited economic changes and rising inflation as sources of concern.
But as the market develops, Gandler and Bronfman are looking to “refine and tweak [their] business.” A letter to shareholders cited economic changes and rising inflation as sources of concern.
“We see meaningful opportunities to continue to reduce internal costs as well as drive improvement in unit economics associated with content,” the Fubo couple wrote. “We continue to work towards a significant increase in high-margin advertising revenue. We believe in this economic environment that cutting the rope will only increase and that Fubo will continue to benefit from this accelerating trend.”
Notably, Fubo’s trading price rose after the revenue figures were released.
Fubo is not giving up on joining the gambling market as a whole. Instead, they simply lengthen the process while still maintaining great interest.
Gandler and Bronfman said after they “evaluated how best to measure [their] Capabilities in today’s market, “they can no longer” pursue this opportunity [their] King.” As a result, the interactive betting service is now “under strategic review.”
The bettors do not need to worry, because where one door is closed, another door appears to have been opened. Fubo specifically indicated that they would not pursue the opportunity on their own, suggesting that they could partner with another operator, organization or site to re-enter the market.
Fubo is already working with the NBA’s Cleveland Cavaliers, making it the first streaming service to team up with an Ohio-based team.
The chiefs made it clear that one day they would have the conversation again
There is no immediate timetable as to when Fubo will be looking to join the gambling scene. However, officials have made it clear that one day they will have the conversation again.
“We are in internal and external discussions to determine the best path forward for the Fubo Games business and look forward to sharing more information,” said Gandler and Bronfman.
FuboTV reported a net loss of $116.3 million, including $10.7 million of reputation impairment related to its gaming operations.