In December 2021, Fubo TV launched a branded Sportsbook. It was the first online TV streaming app in the US. The app debuted in the world of gambling with this launch. It launched the sportsbook in Arizona with the debut of its technology in Iowa, the company will launch in New Jersey soon.
However, it may seem that the New Jersey launch is not going as originally planned. Furthermore, the president of Fubo Sportsbook announced in a tweet that they are looking for new partners in the business.
The tweet states that the company wants to explore a partnership and does not think it is fit to continue on its own. Hence, they want to explore the path best suited for the company’s business scale. They will update us as the conversation progresses.
There are many speculations as to why they have put the launch on hold. The company had aggressive plans of launching and taking over the market up until recently. The answer lies in the facts of fiscal.
The company remains optimistic about the long-term goals but recognizes that the short-term financial costs were detracting from the overall goal of rendering the streaming service beneficial. FuboTV CEO David Gandler stated during the earnings call that things have changed significantly since Fubo Sportsbook Arizona first entered the market.
He states that when the company first decided to enter the business it was different. The climate and efficiency of the cost of capital were different. But due to the recession hit inflation has hit an all-time high. This causes less profitability for new businesses.
Potential partners for Fubo sportsbook:
One of the unimpressive aspects of FuboTV’s decision to discontinue wagering operations is that the company entered the online Arizona sports betting market with a highly unique concept. The concept was of changing the way people bet on games.
Fubo Sportsbook was a pioneer in betting interactivity by combining an owned and operated sports betting platform with live television. However, if they find the right partner, they can continue to amaze the rest of the world. To continue in the market, Fubo TV sees it appropriate to look for potential partners. With these partners, they will partner up for the planned launches in different states of the US. Some of the potential partners include:
- Caesars Sportsbook with already over 200successful partnerships.
- DraftKings sportsbook with over 400 partnerships in the market.
- Fanatic sportsbook with over525 partnerships in the states.
- Underdog fantasy sportsbook with over 800 partners around the USA.
- Hard Rock Sportsbook interactive with more than 900 partnerships.
- FanDuel sportsbook with 1000 partnerships in the market.
- Fubo TV partners with any of the above it will be profitable. Moreover, it will be able to launch its mobile sports betting app in Arizona and other states as it had initially planned. These partners have relevant experience and licenses in the market to make it to the top and stay there. It will help Fubo out in as many aspects as possible.
Most likely partner choices for Fubo TV:
In the market, there are the top two best choices for Fubo TV, which are Draftkings Sportsbook and Caesars Sportsbook. There are some common grounds available to Fubo TV with Caesars Sportsbook.
Sportsbook Fubo Arizona obtained its license in the state through a collaboration with the Indian Community. They also joined with Caesars to operate its Harrah’s Ak-Chin casino and hotel. According to Butera, Caesars introduced them to Ak-Chin India. This can provide a good basis for the partnership.
Other than these two, there are Fanatic and Hard Rock. They are willing to acquire the market by buying to acquire most of the sportsbooks in the USA. This presents them with an opportunity to do so. If Fubo TV decides to partner with either one of these, it will be beneficial for both of them in many terms. But the decision is still pending.
What is the next step for FuboTV?
The prospect of a partnership with others may have served to overshadow in some ways, but FuboTV has produced positive results. Butera’s statements on Friday came after that of FuboTV’s second-quarter earnings report last week, in which David Gandler, discussed where he sees Fubo Sportsbook headed shortly as a sportsbook.
The president still believes that the company’s intersection of video and gaming is defensible and profitable. But, due to high costs, it cannot go on with it alone. They need a partner to go on and be more stable. This decision was made from the breakeven of the business cash flow. Gandler believes that securing a partner will help them move forward and innovate freely.
FuboTV saw its net loss widen to $116.3 million for the second quarter, compared to a $94.9 million loss it suffered in 2021 due to goodwill impairment. Gandler expressed confidence in the New York-based operator, noting that it has licenses in more than three states and many business partnerships all over the country.
The company’s president, Gandler, believes that they have created some great features which will help them secure partnerships. The fact that they have 10 or 11 licenses relevant to the market, cannot be ignored either, as they provide a compelling picture for potential partners so far.
Future of Fubo sportsbook in the sports betting industry:
According to B Global Managing Partner Brendan Bussmann, Fubo Sportsbook is a highly sought-after asset for established market players. It has the same standing as the newcomers that are seeking to increase its market share.
Rather than partnering with an established sportsbook, Fubo could pursue a commercial partnership with a large media company looking to enter the sports betting space. Disney CEO Bob Chapek stated on Wednesday that the company has had discussions with several platforms about incorporating sports betting. He added that the corporation hopes to form a partnership in the future to “access that revenue stream.”
According to Bussmann, Fubo will most likely have a choice of partners as they have the right kind of licenses and market access deals at its disposal. Fubo TV will reach its great heights in no time.