FuboTV has abruptly shuttered its sports betting operation after failing to grab significant market share in any of the states in which it operates.
Shareholders responded positively to the company’s decision, with shares rising double digits in early trading following the decision. Fubo’s “unique” approach looked to intertwine its streaming service with sports betting. If a user was watching FuboTV, then using the sports betting application would see the app offer markets on whatever the user was watching.
The initiative struggled to gain traction, with handle share of 0.07% in Arizona and 0.13% in Iowa and having just launched in New Jersey in September.
“The launch reinforces FuboTV’s commitment to interactive wagering following its recent decision to place its online wagering business under strategic review. The company continues to believe that an integrated wagering platform, offering both live video and a sportsbook, will result in the best viewing and gaming experience for consumers. However, given today’s macroeconomic environment, FuboTV has concluded that it will no longer pursue this opportunity on its own and is exploring the best path forward.”
David Gandler, co-founder and CEO of FuboTV added: ““Today’s launch marks an important milestone for Fubo Sportsbook. Our book is now available in three states, including one of the top wagering markets in the country, just 10 months after launching our first. We remain committed to interactive wagering and continue to explore potential partnership opportunities for Fubo Sportsbook.”
The aforementioned quotes makes the immediate withdrawal of the sportsbook surprising.
There has, however, been a Dissolution notice posted with the Delaware Secretary of State on 17th October, confirming that Fubo Gaming has commenced a wind down of its operations due to current economic conditions, and it will not have any remaining assets to distribute to its ‘few remaining creditors’.
FuboTV becomes the first sportsbook to disappear following high CPA costs and the ‘US goldrush’. Time will tell how other books get on with aggressive expansion and products that can’t match the acquisition spend of the biggest hitters in the industry.
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