FuboTV Inc., a TV streaming platform, on Monday said that it is closing its fledgling online sportsbook.
The Fubo Sportsbook was regulated online in Arizona, New Jersey, and Iowa. Sports betting is legal in more than 30 states across the U.S.
The sportsbook app Vigtory, which later became Fubo Sportsbook, was sold to Fubo for an undisclosed amount in 2021.
“The company has now completed its previously announced strategic review of the Fubo Gaming business,” the company said in a press release. “While multiple parties expressed interest in the business, none of these opportunities would have allowed Fubo to lower its funding requirements and generate sufficient returns to shareholders. As a result, FuboTV will close its Fubo Gaming subsidiary and cease operation of its owned-and-operated Fubo Sportsbook effective immediately.”
The announcement was part of the firm’s report on its preliminary third-quarter 2022 results.
Sports betting is a highly competitive industry, with Fubo Sportsbook having to compete against the likes of FanDuel, DraftKings, and BetMGM, which have the majority of the market share.
“FuboTV’s strong preliminary third quarter 2022 results reflect meaningful advancements against our continued mission to profitably scale a leading global live TV streaming platform differentiated by the greatest breadth of premium content and interactivity,” said David Gandler, co-founder and CEO. “We expect to deliver strong revenue and subscriber growth in Q3, exceeding our previously issued guidance in North America, against the backdrop of a highly competitive operating environment. We’re pleased with this expected performance and our progress toward achieving our positive cash flow target in 2025.”
“Following our previously announced strategic review, we have concluded that continuing with Fubo Gaming and Fubo Sportsbook in this challenging macroeconomic environment would impact our ability to reach our longer-term profitability goals. Therefore, we have made the difficult decision to exit the online sports wagering business effective immediately. 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 North American revenue of at least $210 million, an increase of approximately 34% year-over-year.