In a surprising turn of events, FuboTV has announced that it is shutting down its sports betting operations. This comes after the company failed to make any significant headway in the crowded market in the states where it goes live.
However, just two days after going dark, the sportsbook is back online for customers to withdraw their funds. The sportsbook app will not accommodate more deposits and bets as it will only work for withdrawals.
Fubo Sportsbook Ceases Operations
Fubo’s online sports betting platform has been one of the new entrants in the growing industry. It only launched in three states, namely, Arizona, Iowa, and New Jersey. The company enters the market with a unique approach to delivering its services as it integrates sports gambling and its streaming services.
However, the business model doesn’t seem to be a revolutionary one for bettors as it only gained 0.07% market share in the Arizona sports betting market, and 0.13% in Iowa. It just goes live in the Garden State last month and is expected to open in multiple states in the coming months which makes the shutdown more surprising
As per the statement of David Gandler, co-founder and CEO of FuboTV, last September regarding its NJ Launch:
“Today’s launch marks an important milestone for Fubo Sportsbook. Our book is now available in three states, including one of the top wagering markets in the country, just 10 months after launching our first. We remain committed to interactive wagering and continue to explore potential partnership opportunities for Fubo Sportsbook.”
One of the main reasons for the shutdown of Fubo’s sports betting unit was the company’s 100M losses last quarter. Shareholders agree to the board’s decision and decided to move forward even without finding the Buyer for the sportsbook infrastructure.
Fubo Opens Again for Withdrawals
Fubo will be temporarily available among other sportsbooks in Arizona, as well as in other states where it operates to let its users withdraw the funds remaining on their E-wallet accounts. The app will only assist withdrawals and will not accommodate sports bets.
According to the Email from the Fubo TV senior vice president of communications, Jennifer Press:
“Fubo Sportsbook is back online for existing customers in New Jersey, Iowa, and Arizona to process withdrawals directly by logging into their accounts. If customers cannot process a request online, they should contact customer support for assistance or to request payment in the form of a check, which will be mailed to them.”
The time frame allowed for withdrawals was not announced but regulators said that it is expected to be online for at least 30 days,
There is also no announcement if Fubo will turn over the sportsbook infrastructures and licenses to other entities, nor about its partnership like in Ak Chin Indian Community in the Arizona market.
Other Sportsbooks in Arizona
The exit of Fubo in the Pelican State may have little to no effect on the overall sports gambling market in the state, but those who are left behind by the sportsbook may still wager on sports through several platforms available including: