FuboTV announced as part of its preliminary third quarters results Monday that it would cease operations of Fubo Sportsbook effective immediately and leave the sports wagering marketplace.
In a press release, FuboTV co-founder and CEO David Gandler said “continuing with Fubo Gaming and Fubo Sportsbook in this challenging macroeconomic environment would impact our ability to reach our longer term profitability goals.” FuboTV had previously expressed the goal of being profitable by 2025 and had initiated a strategic review in August to potentially find a partner for the sportsbook.
According to the company, 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. Therefore, we have made the difficult decision to exit the online sports wagering business effective immediately.”
FuboTV plans to go into greater detail about the decision during its Nov. 4 earnings call that will also provide a full third-quarter picture and its full-year outlook. It expects to close the quarter with $210 million in North American revenue, a 34% year-over-year increase, and more than 1.2 million paid subscribers — slightly above prior guidance that estimated between 1,135,000 and 1,155,000 paid subscribers.
FuboTV’s original plan to enter the sports wagering marketplace came with the acquisition of interactive gaming company Vigtory in January 2021. At the end of trading on the day of the announcement, it was trading at $36.18 on the New York Stock Exchange. FuboTV reached an intraday low of $3.93 shortly before close Monday and was trading at $4.05 after hours.
Struggling to get a toehold in markets
Fubo Sportsbook’s most recent entry into legalized sports wagering came just last month in New Jersey, where it gained access through a deal with Caesars in March 2021. That deal also provided access to Indiana, but Fubo Sportsbook did not launch in the Hoosier State. It launched operations in Iowa via Casino Queen in November 2021 and Arizona the following month through the Ak-Chin Indian Community. Fubo Sportsbook also had plans to enter Pennsylvania in coming months via a deal with The Cordish Companies.
Both Iowa and Arizona have an abundant amount of mobile wagering options available, with the Hawkeye State having had mobile available for more than two years before Fubo’s entrance. According to figures compiled by the Iowa Racing and Gaming Commission, Fubo Sportsbook handled more than $1.9 million worth of wagers in the 2022 calendar year and generated $116,822 in revenue for a 6.1% hold.
Its monthly highs for both handle and revenue in the Hawkeye State came in January with $428,688 in wagers and $54,038 in revenue. Fubo Sportsbook finished in the red in three of nine months this year, including September, when it paid out $5,310 more than the $262,966 in wagers accepted.
Fubo Sportsbook fared slightly better in Arizona, where legalized wagering launched in September 2021. It totaled just shy of $4 million in all-time handle through the most recent report compiled for July by the state’s Department of Gaming. It reached a peak handle of $895,232 in February, but the volume steadily declined to $210,377 in July — less than half of June’s $459,181 worth of bets. Fubo Sportsbook’s top revenue month in the Copper State came in March with $106,887.