Sportsbooks such as BetRivers and PointsBet are prepping for football season, and streaming is a big part of their expected future growth.
FuboTV is looking for help to create the future of its Fubo Sportsbook product. A challenging financial market led to FuboTV (FUBO) looking at internal cost-saving measures, which include potentially offloading its sportsbook plans, according to a shareholder letter distributed before Thursday’s second-quarter earnings call. According to the letter, its sports betting business is under strategic review.
Fubo bought sports betting company Vigtory in January 2021 with plans its streaming product with sports betting. On a recent earnings call, Fubo CEO David Gandler said the changes in the economic climate since early 2021 necessitate the move away from its promising start, a change from earlier times.
“We don’t see wagering as simply an add-on product to fuboTV,” Gandler said in early 2021. “Instead, we believe there is a real flywheel opportunity with streaming video content and interactivity. Our free-to-play gaming experience, which will be available to all consumers, will build further scale to FuboTV, essentially acting as another lead generator for driving subscribers to our streaming video platform and, ultimately, our sportsbook.
“We not only expect sports wagering to become a new line of business and source of revenue, but we also expect that it will increase user engagement on fuboTV resulting in higher ad monetization, better subscriber retention, and reduced subscriber acquisition costs.”
The company debuted Fubo Sportsbookin Iowa in November 2021 and launched in Arizona. In May, Fubo Sportsbook took $450,000 in bets in Arizona or 0.1% of the market. It handled $125,000 in Iowa or 0.09% of the state’s online handle.
The operator also applied to the New Jersey Division of Gaming Enforcement with plans to be live in NJ Sports betting and NFL betting. Another unnamed market is near launch as well.
There was talk at recent industry conferences about the future of integrated betting. As Fubo looks to back up on its plans, other operators could be eager to jump on board.
There are various paths Fubo could go down. One could include bringing on a strategic partner to help support existing sportsbook technology efforts, which appears to be the preferred pathway.
Fubo also is an acquisition target, as it has market access to 10 states and certain technologies that might interest other companies. An acquisition could be a content play for a sports betting company or sports betting move for a bigger media company.
Fubo grew its North American subscriber base to 947,000 customers in the second quarter, 41% year-over-year growth. With that came a 66% increase in North American revenue, up to $216.1 million.
Along with a tough global economic climate, the streaming content and sports betting industries are in competitive and transformative times. So despite those increases, the company recorded a net loss of $116.3 million, a 22% decrease from a $94.9 million loss in Q2 2021.
Now is the time to check out BetRivers and PointsBet for the latest bonus offers for the upcoming football season!