The online betting operator, Fubo Sportsbook is a subsidiary of the streaming provider FuboTV. It shut down its operation Monday, abruptly after the parent company concluded a strategic review of the operations.
In early August, the company announced its strategic review of the sportsbook. During that time, the officials of Fubo were expecting to find a sports betting partner. They believed that the streaming platform based on sports couldn’t operate independently.
FuboTV, on Monday, posted a preliminary financial overview and announced that many parties have inquired about the operations of sports betting. Nevertheless, none of the prospective partnerships is going to let the company cut down on its funding in the operation or let the company offer a sufficient return on investment to the investors.
Due to that, FuboTV shut down the sportsbook immediately.
David Gandler, the CEO and co-founder of FuboTV said that following their previously announced strategic review, they have concluded that keeping up with Fubo Sportsbook and Fubo Gaming in this challenging macroeconomic environment can affect their ability to attain long-term profitability goals.
Gandler added that the company is going to provide more color when it holds its third-quarter earnings call on 4th November.
But a company’s spokesperson refused to answer follow-up questions and mentioned that Fubo doesn’t have any added details to share at the time. Also, the company announced that it expected a loss of $100 million in its adjusted earnings before interest, depreciation, taxes, and amortization for the third quarter.
Fubo had been operational in Iowa, Arizona, and New Jersey. But now, in New Jersey, the site when opened says “offline for maintenance”. While in Iowa and Arizona, the site when opened said “check back soon”.
It is not certain if the account holders of Fubo who have money in their account will be able to access the funds or not.
