FuboTV, the US over-the-top live television sports streaming service, has altered plans to create an independent online betting platform for financial reasons.
The company announced its betting business will undergo a “strategic review” after releasing its earnings report for the second quarter of the year last week.
FuboTV said the decision to no longer pursue operating its own independent online sportsbook was taken “in light of the current economic environment”.
The platform will instead seek to create an integrated betting offering and look for partnerships to help run its betting arm rather than going it alone.
The streaming service currently operates its Fubo Sportsbook app in Iowa and Arizona and expects to also launch in New Jersey ahead of the upcoming NFL American football season.
For now, Fubo Sportsbook will continue to operate in those states where it has already been approved while the company looks for a buyer or partner for its sportsbook.
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In a letter to shareholders, David Gandler, co-founder and chief executive of FuboTV, said: “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.
“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.
“In light of a rapidly-evolving macro-economic environment, we believe it is important to be even more capital efficient than originally scoped. We are taking steps to de-risk our business and have made the decision to no longer go down the wagering path independently.
“Accordingly, our interactive wagering business is under strategic review. We are in internal and external discussions to determine the best path forward for Fubo’s gaming business and look forward to sharing more information.”
FuboTV has been among the most aggressive streaming services to integrate sports betting directly into its live TV viewing proposition since it acquired sports betting and interactive gaming company Vigtory in January 2021.
The OTT platform has signed gaming sponsorships with stock car racing series NASCAR and the Cleveland Cavaliers, of basketball’s NBA, as well as a deal with the NFL’s New York Jets that saw a Fubo Sportsbook lounge installed at the team’s MetLife Stadium last season.
Major League Soccer franchise Houston Dynamo also agreed a new long-term partnership with the company’s Fubo Gaming subsidiary earlier this year.
Last Thursday (August 4), FuboTV announced revenue of $221.9 million in Q2, which represented a considerable rise from the $130.9 million reported during the same period last year.
Despite the increased revenue, however, the platform posted a net loss of $116.3 million, compared to the $94.9 million loss in 2021.