Streaming provider FuboTV is pulling out of its plans to offer an integrated gambling service. [Image: Shutterstock.com]
The news comes despite Fubo growing 41% year-over-year, with 946,735 subscriptions at the end of the second quarter. International customers in France and Spain also overshadowed 347,000. North American sales increased 65% to $216.1 million and international sales reached $5.8 million.
Fubo CEO David Gandler and Chairman Edgar Bronfman Jr. noted, however, that the company’s impressive numbers “came under pressure primarily due to underperformance of specific sports content during a typically low-growth part of the year.”
FuboTV is leaving gambling soon
Fubo first announced its plan to enter the gambling market in mid-June. The betting service launched in Iowa and Arizona; it planned to expand to other states during the football season.
All fans had to do was scan a QR code, which then redirected them to the Fubo sportsbook. Fans in states outside of Arizona and Iowa could still compete for points on a no-revenue leaderboard.
A letter to shareholders pointed to economic changes and rising inflation as a source of concern.
But as the market has evolved, Gandler and Bronfman want to “refine and adapt” [their] company.” A letter to shareholders pointed to economic changes and rising inflation as a source of concern.
“We see meaningful opportunities to continue to reduce internal costs and improve the content-related unit economy,” the Fubo pair wrote. “We continue to drive significant growth in our high margin ad revenue. We believe in this economic environment that cord cutting will only increase and that Fubo will continue to benefit from this accelerating trend.”
In particular, Fubo’s trading price rose after the sales figures were released.
An imminent return
Fubo is not giving up its participation in the gambling market as a whole. Instead, they simply prolong the process while maintaining a high level of interest.
Gandler and Bronfman said that after they “assessed how best to scale” [their] capabilities in the current market, they would no longer pursue this opportunity on [their] own.” As a result, the interactive gambling service is now being “strategically reviewed”.
Gamblers need not worry because where one door closes, another appears to be open. Fubo specifically noted that they would not pursue the opportunity alone, suggesting they could partner with another operator, organization or location to re-enter the market.
Fubo has already partnered with the NBA’s Cleveland Cavaliers, making it the first streaming service to join forces with an Ohio-based team.
the higher people made it clear that they will have the conversation again one day
There is no immediate timetable for when Fubo will look to rejoin the gambling scene. Still, the senior officials made it clear that they will have the conversation again someday.
“We are in internal and external discussions to determine the best way forward for Fubo’s gaming business and look forward to sharing more information,” said Gandler and Bronfman.
FuboTV posted a net loss of $116.3 million, including $10.7 million in goodwill impairment charges related to its gambling business.
This post FuboTV pulls out of the gambling market, may return soon
was original published at “https://www.vegasslotsonline.com/news/2022/08/07/fubotv-stops-gambling-service-could-look-to-relaunch-in-the-future/”