FuboTV revising sportsbook strategy due to economic concerns

FuboTV, an American television streaming service, is in the process of making some changes to its sports betting strategy as a result of the “current economic environment”.

The company still believes that to give sports bettors the best experience, a television streaming service is essential for an online betting application. However, the sports-centric organization revealed it would not be able to achieve the feat on its own.

On Thursday, FuboTV presented its quarterly earnings report and revealed that the sports betting decision was currently “under strategic review”. Talks concerning the future of the sector were ongoing internally and externally.

The organization is currently in charge of the Fubo Sportsbook operations in Arizona and Iowa, while there are plans to launch a branch in New Jersey before the approaching NFL season.

The company wrote, “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 is now considering alternate methods, such as collaborating with another existing sportsbook, to achieve its betting goal. Since getting Vigtory, its sports betting app, in 2021, FuboTV has joined a number of streaming services that have merged online activity into their TV viewing experience.

Fans who have subscribed to the sports betting company’s service are now free to use the integration named ‘Watching Now’. The integration allows the players free access to play predictions on their smart TV while watching a game live. People in Arizona and Iowa could also use their phones to place bets using the Fubo Sportsbook by scanning the QR code provided on the screen.

Fubo revealed that for the quarter ending June 30, around 947,000 people in North America had subscribed to the service. This is a 41% increase from the results of the same quarter last year. The company leaders reportedly have high hopes for an increased subscription list due to the new football season.

Fubo blames economy for sports betting struggles

In a letter addressed to shareholders, the company revealed that to “de-risk” its operations, it decided not to go into the venture on its own.

“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,” the letter read.

“We are taking steps to de-risk our business and have made the decision to no longer go down the wagering path independently. As a result, we’re evaluating strategic opportunities for our wagering business.”

Fubo CEO David Gandler was part of a call with investment analysts and talked about the company. He revealed that Fubo officially became a sports betting business over 18 months ago. The company reportedly made the move because, at the time, “the cost of capital was pretty much free” and it enjoyed a favorable business climate.

As a result of the possible recession, Fubo revealed that most of its focus would be “reducing our cash burn”.

The latest financials revealed that in the last quarter alone, the company experienced a net loss of $116.3 million. Fubo also lost $94.9 million a year earlier in the same quarter.

Fubo recently turned in its license application to the New Jersey Division of Gaming. The CEO revealed that the approved letter was expected before the football season kicked off. He also said the fourth location would begin operations before the end of the year.

Fubo has access agreements in seven different states. As a result of an agreement with Caesars Entertainment, Fubo acquired the company’s rights in states like Mississippi, Louisiana, and Missouri. Another arrangement occurred between Fubo and The Cordish Companies and involved a skin in Pennsylvania.

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