The idea sounded worthy enough to pursue, with a good chance of success. FuboTV, a sports streaming service, planned to marry sports betting with live games. The company operates sportsbooks in Iowa and Arizona , and is expected to launch in New Jersey in time for football season.
But in its second-quarter earnings report on August 4, the company acknowledged that it will adjust its betting strategy “in light of the current economic environment.” The company will no longer seek to operate its own independent online sportsbook, according to SportTechie.
Fubo has been aggressive in its drive to integrate sports betting directly into its live TV viewing experience since it bought the sports betting app Vigtory in January 2021.
“We continue 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,” Fubo said in a letter to shareholders. “However, as we have evaluated how best to scale these capabilities in today’s market, we have concluded that we will no longer pursue this opportunity on our own.”
For Fubo, one possible avenue would be to partner with one of its competitor sportsbooks.
“While our disciplined sportsbook progress continues, in light of a rapidly-evolving macro-economic environment, we believe it is important to be even more capital efficient than originally scoped,” according to Fubo’s shareholder letter. “We are taking steps to de-risk our business.”
Still, the company has no intention of abandoning its soon-to-be-completed quest to become the 25th online license in New Jersey, according to NJ Online Gambling.
“We recently submitted our Fubo Sportsbook mobile app to the New Jersey Division of Gaming Enforcement and expect to be approved in time for the 2022 football season,” the letter continued.
Fubo, which hopes to launch in a fourth state in the coming weeks, also has gaming sponsorships with NASCAR and the Cleveland Cavaliers and operated a sportsbook lounge inside MetLife Stadium last NFL season.
