Fubo Sportsbook's Operation to Be Ceased by FuboTV, Effective Immediately
Nov 02, 2022
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FuboTV intends to shut down its Fubo Gaming division and stop running the Fubo Sportsbook that it owns and runs. What is the reasoning behind this decision? Was Fubo’s launch successful?
The Launch of Fubo Sportsbook
On September 7, sports fans in the Garden State who are 21 years of age and older gained the ability to use the Fubo Sportsbook app to place a variety of bets on thousands of professional and out-of-state collegiate sporting events. Fubo's groundbreaking sportsbook, the first to combine watching and betting in a single environment, was launched just in time for the 2022–23 football season, one of the busiest times for sports betting.
After deciding to put its online gambling business under strategic review, the launch confirmed FuboTV's dedication to interactive betting. FuboTV has decided that it will not enter the market alone.
Through a partnership with Caesars Entertainment, Inc., FuboTV's objective was to provide individualized omniscreen experiences that change passive viewers into active participants.
Why Did Fubo Cease Operation
The group stated that while several parties indicated an interest in the Fubo Gaming business, none of the alternatives given would have allowed the company to cut its funding requirements and produce enough returns for shareholders.
The development coincides with Fubo's preliminary third-quarter 2022 statistics, which show that sales in North America are expected to reach at least $210 million, up 34% from the same quarter the previous year.
The revenue from the rest of the world, which includes Molotov, the French live TV streaming business that FuboTV bought in December 2021, is anticipated to reach at least $5.5 million.
The group anticipates an adjusted EBITDA for the period of about negative $100 million, and it anticipates having at least $300 million in cash and cash equivalents at the end of the quarter.
Paid subscribers are anticipated to surpass 1,220,000 in North America, an increase of 27% year over year, and to total about 350,000 in the rest of the world.
David Gandler, co-founder and CEO of FuboTV, said the company's outstanding preliminary third quarter 2022 results indicate significant progress toward their ongoing ambition to successfully develop a top global live TV streaming platform distinguished by the widest range of premium content and interaction.
Gandler talked briefly about the decision to shut down Fubo Sportsbook. According to him, the company's previously disclosed strategic evaluation led them to the conclusion that maintaining Fubo Gaming and Fubo Sportsbook in the current difficult macroeconomic climate would hinder their capacity to meet their longer-term profitability targets.
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About Fubo
Fubo Gaming Inc., a Chicago-based subsidiary of live TV streaming service FuboTV Inc., was established in 2021. It is also the creator and supplier of Fubo Sportsbook. Fubo Sportsbook was specifically designed to interact with FuboTV. Fubo Sportsbook was operational in Arizona, Iowa, and New Jersey.
Fubo Gaming has engaged in market access agreements with Caesars Entertainment, Inc., The Houston Dynamo Football Club in Texas, the Cordish Companies in Pennsylvania, and the NBA Cleveland Cavaliers in Ohio.