FuboTV is readying a push to find a partner for the company’s mobile sports betting apparatus.
In a Twitter thread Friday, Scott Butera, who serves as the president of Fubo Sportsbook, said the company would actively seek out a partner to help grow its brand.
The company launched its Arizona sportsbook in December 2021. It debuted its technology in Iowa and is currently on the verge of launching in New Jersey.
“As we announced on our Earnings call yesterday (Aug. 4), we continue to believe that an integrated wagering platform that offers both live video and wagering will result in the best viewing and gaming experience for consumers,” Butera tweeted.
“We have decided, however, that we will no longer pursue this opportunity on our own and are exploring the best path forward to scale the business. We look forward to continuing to update you as conversations progress.”
Odds to Partner With Fubo Sportsbook
Which Operator Could Partner With Fubo Sportsbook?
One potential partner that comes to mind for FuboTV is Caesars Sportsbook Arizona.
Fubo Sportsbook Arizona received its license in the state through a partnership with the Ak-Chin Indian Community, which also partners with Caesars to operate its Harrah’s Ak-Chin Hotel and Casino.
“So, Caesars originally introduced us to the Ak-Chin Indian Community,” Butera told BetArizona in December shortly after Fubo launched in the state. “We work with Caesars in Indiana, and in New Jersey and other places. And they're a good partner for us, and the Ak-Chin Indian Community have also been a fantastic partner.”
It might also make sense that DraftKings Sportsbook would be interested in acquiring or partnering with Fubo Sportsbook — the Boston-based operator bought Golden Nugget Online Gaming in May.
Other names to keep an eye on are newcomers to the scene, such as Fanatics (which received its first retail sports betting license in Maryland in June) and someone like Hard Rock Interactive, which has shown a willingness to open its pocketbook to acquire market share in the states its licensed in.
Both DraftKings and Hard Rock offer Arizona sports betting apps — DraftKings in partnership with the TPC Scottdale and Hard Rock through the Navajo Nation.
Why Now for Fubo Sportsbook?
Butera’s statements Friday came on the heels of FuboTV’s second quarter earnings call last week, in which David Gandler, co-founder and CEO, discussed where he sees Fubo Sportsbook going in the near-distant future.
“The reason I'm still bullish on the intersection of video and gaming is that integrated experiences build defensibility,” Gandler said on the call. “And it's something that is a cornerstone of what we're doing, given the fact that we're a sports platform. With respect to the first part of your question, I think it's become apparent that we cannot go it alone, given the costs associated with driving that business to cash flow breakeven.”
All told, FuboTV reported a net loss of $116.3 million in the second quarter of the year, with $10.7 million in goodwill impairment charges from Fubo Sportsbook’s operation.
Gandler did express confidence the New York-based operator has a lot to offer a prospective partner, with its licenses in three states and various partnerships across the country.
“But we will look for opportunities to partner with other companies. And given how much we've already built out with the Pick'em games and some of the other features, it could be quite compelling. We also have, if I'm not mistaken, 10 or 11 market access license deals in place,” Gandler added.
“So, we have some value to offer partners looking to quickly get into the business and at the same time, not have to worry about spending a lot of money marketing to consumers, given the number of customers we have, as well as the number of trials that are coming in on a regular basis.”
What the Sports Betting Industry Sees for Fubo Sportsbook
B Global Managing Partner Brendan Bussmann sees Fubo Sportsbook being a highly sought-after asset for established players in the marketplace, as well as newcomers looking to grow market share.
Fubo will likely have their choice of partners given the licenses and market access deals the operator has at its disposal, Bussmann said.
“There are a host of opportunities for partnership with Fubo considering the number of players currently in or looking to get into the market,” Bussmann told BetArizona.com. “Companies like Fanatics or Underdog that are looking for access to stalwarts like FanDuel or Caesars could all be looking for an additional partnership, but we will have to see what happens from here.”
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