Online streaming company, FuboTV just made an announcement about its sports betting app and gaming operation. Unfortunately, it is not good news for sports bettors using their service. This is because effective immediately, Fubo Sportsbook is Shutting Down and is no longer taking wagers.
Before the announcement came out, Fubo players were in a state of limbo because the site was offline for maintenance. However, now that the news is out, their clients have until November 17 to withdraw their funds. After that date, a physical check will be sent to them in the mail and will arrive in 7-14 days. For current open wagers, Fubo House rules take priority unless it settles as a win after November 17, 2022. If that is the case, a check for the winnings will be sent to the player’s home address.
David Gandler, co-founder of FuboTv and its current CEO said they would also be shutting down their Fubo Gaming subsidiary. According to gambling industry news, they will provide more information during its November 4 earnings call. In the meanwhile, their sportsbook competitors will eagerly take over their market share in Arizona, Iowa and New Jersey.
Fubo Sportsbook is Shutting Down after Failing to find a Partner
The news of their doom came right after they company made increase in their North American revenue. According to the report, FuboTV saw an increase of $210 million during the third quart of 2022, up 34% year-over-year. Despite the increase in revenue, Gandler said that the current “challenging macroeconomic environment” would impact their long-term profitability goals.
Last August, Fubo was looking for a sports betting partner because they felt they could not operate their sportsbook alone. While they did receive several inquiries, none of the potential partnership was what they were looking for. This is because none of them would reduce the funding for the operation or provide enough returns to investors.
Fubo expects to lose $100 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBIDTA) for the third quarter.
As Fubo exits the sports betting industry, it will be somewhat of a relief for their competitors. This is because at the moment, most sportsbooks are having a difficult time making a profit. Therefore, Bookie Pay Per Head providers are expecting to see an all-out war for ex-Fubo sportsbook clients.
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