Fubo’s sportsbook operation is no more. The company has decided to shut down its online sportsbook before it could enter the Indiana market.
Fubo’s sportsbook was operating in just a few states
The sports-focused live TV streaming service had operated a sports betting app since November 2021 under Fubo Gaming Inc. Fubo Sportsbook had planned on opening in affiliation with Harrah’s Hoosier Park Casino.
The company announced the decision to shutter on its website.
“On Monday, Oct. 17, 2022, Fubo Gaming ended sportsbook operations. As a result, Fubo Gaming will no longer accept wagers or deposits, however, Fubo Gaming customers can withdraw funds which have been deposited into their accounts but not yet wagered, as well as any winnings from wagers. Open wagers will settle as provided in the Fubo Gaming House Rules.”
Decision came after considering future projections
The decision to close Fubo Gaming operations was influenced by the company’s 2025 profitability targets, a press release said.
A strategic review of the Fubo Gaming business was done with those goals in mind. An inability to lower funding requirements and generate sufficient returns for stakeholders – despite multiple parties expressing interest in the business – ultimately led to the decision to cease operations of its sportsbook effective immediately, the company said.
Indiana market could have been lucrative for Fubo
The announcement comes on the heels of Indiana collecting more than $1 billion in gambling taxes over the span of a year (July 2021 through June 2022). It’s proof that a Fubo sportsbook in Indiana could have been financially lucrative.
The company was operating sportsbooks in Arizona, New Jersey and Iowa when it ceased operations. It was pending approval in Louisiana, Mississippi, Missouri, Ohio, Pennsylvania and Texas, in addition to Indiana.
Decision on sportsbook does not affect FuboTV
Fubo Gaming still allows fund withdrawals on its website through Nov. 17 for the three states that had active sportsbooks. The company will mail out any remaining funds not withdrawn by that date.
Fubo emphasized that “FuboTV is fully operational and there is no impact to FuboTV subscriptions as a result of Fubo Gaming operations ending.”
FuboTV, which first launched in 2015, expanded its business since then through the acquisition of companies, increasing its reach internationally, and widening its business offering with gaming and wagering. This allowed Fubo to achieve company-best numbers for revenue and subscribers as it moved into gaming and wagering in 2021.
Then, in March 2021, Fubo said it surpassed $100 million in quarterly revenue for the first time in the fourth quarter of 2020.
Fubo’s ultimate goal was to integrate interactive gaming and sports betting into its TV experience.