FuboTV has announced that it will shut down Fubo Sportsbook immediately. [Image: Shutterstock.com]
FuboTV is shutting down online sports betting operations in the US with immediate effect. The streaming service provider announced in a filing with the Securities and Exchange Commission (SEC) Monday that it is closing the Fubo Gaming subsidiary that ran Fubo Sportsbook. The announcement came as FuboTV announced its preliminary financial results for the third quarter.
Continuing to operate the sports book independently in the current economic climate was not viable
The decision to end sports betting operations follows a strategic review of the betting 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 has not been viable.
FuboTV has had some interest from several parties in the sports betting space, but these potential partnership opportunities would not have reduced FuboTV’s funding requirements for the operation or generated sufficient returns for its shareholders.
More details to come
There will be some costs associated with closing online betting operations, including various employee related costs such as termination of employment. It will also have to deal with termination fees for certain contracts and market access agreements. More details about the closing will be provided during the earnings call on November 4th.
FuboTV is a virtual multi-channel broadcasting package. One of its main goals is to provide entertainment for sports fans, including live action.
FuboTV CEO and co-founder David Gandler noted that Close the sports book It was a tough decision, but continuing operations will affect the company’s ability to achieve its long-term profitability goals.
You only live in a few countries
The hope was that Fubo Sportsbook would help FuboTV generate additional revenue from its subscribers. Fubo’s sportsbook was only operating in the states of Iowa, Arizona, and New Jersey. There were plans to launch it soon in Pennsylvania and Indiana.
The first Fubo Sportsbook platform was launched live in November 2021
It only officially launched in New Jersey in early September, including the opening of the Fubo Sportsbook Lounge at MetLife Stadium in the New York Jets. 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-managed live TV service. In competitive markets, Fubo Sportsbook’s results in both Arizona and Iowa have been unremarkable.
One of the main features of Fubo Sportsbook is that its app will automatically sync with any live sports event that a person has been watching on FuboTV. Sportsbook partners include NASCAR, the New York Jets mentioned above, and the Cleveland Cavaliers.