Fubo Sportsbook Shutting Down
Most of the news that comes from the US sports betting industry is positive, but that wasn’t the case this week. FuboTV has announced that it is shutting down its Fubo Sportsbook, effective immediately.
This announcement came during the third-quarter earnings call, and the parent company just wasn’t in a position to continue losing money. FuboTV initially hoped that the sportsbook would start to earn money by 2025, but recent numbers suggested that it wasn’t going to happen.
In August, it was announced that FuboTV was looking for a sports betting partner to help get things off and running. The company was also looking to launch Fubo Sportsbook in other markets, but instead is choosing to shut things down immediately.
In the press release for this announcement, Fubo noted that there were several companies interested in partnering with them moving forward. None of those companies would have allowed Fubo to see massive growth, and losing money with the sportsbook was going to hold the company back in other areas.
FuboTV was attempting to change the game in this industry by offering a unique promotion to all new customers. Instead of offering bonus money, bettors were able to receive a free month of FuboTV after making their first wager.
Details Need Sorted Out
This press release was filled with some quotes from top executives at FuboTV, but there wasn’t a ton of detail provided. The sportsbook is now inactive in those states where it had previously launched, but more information is needed.
Bettors in New Jersey, Iowa, and Arizona could have had open bets that still needed an outcome, and it’s unclear what will happen to those wagers. At some point, FuboTV will have to pay out those wagers or initiate a refund.
More information is coming on November 4, when the company has its full earnings call, and the company will also disclose financial information. FuboTV is expected to announce over $200 million in revenue for the quarter, but it could no longer support the sports betting platform.
Just Too Many Options
Fubo Sportsbook was live in just three states, but there were plans to launch in Indiana and Pennsylvania as well. The company targeted some of the top sports betting markets in the United States, but that ultimately proved to be a major challenge.
The New Jersey launch came in September, and the sportsbook never really had a chance to get going. The sportsbook was more established in Arizona and Iowa, but it just couldn’t keep up with other top options.
In Iowa, Fubo Sportsbook had a total handle of just $1.9 million so far in 2022, and the revenue was just $116,000. Iowa is not a state that puts up huge sports betting numbers, but there are plenty of options.
Fubo Sportsbook was having more success in Arizona, but the overall numbers have been on a steady decline since January.
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