Fubo Sportsbook shuts down less than a year after launching sports betting in Arizona.

Fubo Sportsbook Folds Less Than Year After Its Arizona Sports Betting Launch
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Fubo Sportsbook, the second sportsbook in Arizona to close in 2022, had its parent company announce the decision on Monday.

The New York-based publicly traded company released a statement announcing the closure of the online sportsbook, which had obtained one of only 18 Arizona sports betting app licenses through a partnership with the Ak-Chin Indian Community. The closure is effective immediately.

Fubo Sportsbook can now be accessed in Iowa and New Jersey.

David Gandler, CEO and co-founder of FuboTV, said that the company’s decision is influenced by its inability to turn a profit nearly a year after its launch in November 2021.

According to a press release from Gandler, FuboTV’s strong preliminary results for the third quarter of 2022 indicate substantial advancement towards their objective of growing a leading global live TV streaming platform offering premium content and interactive features. Despite facing tough competition in the market, the company expects to see significant revenue and subscriber growth in Q3, exceeding their initial forecasts in North America.

We are pleased with our projected performance and the actions we are implementing to achieve our cash flow target by 2025. Upon careful evaluation of our strategy, we have made the difficult decision to discontinue Fubo Gaming and Fubo Sportsbook due to challenging economic conditions that may impact our profitability goals moving forward. This was a tough but essential choice, and we will be exiting the online sports wagering industry immediately.

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The journey of Fubo Sportsbook to its current position

In August, FuboTV announced its intention to seek out a partner for a collaborative effort in its sportsbook operation.

Fubo Sportsbook President Scott Butera tweeted in August that they believe a combined wagering platform with live video will offer the best consumer experience. They have chosen not to pursue this alone and are now looking into how to expand the business. Stay tuned for updates as talks progress.

The goal of Fubo Sportsbook was not achieved, even though it garnered interest from multiple businesses, as stated in the release.

The Implications of Monday’s Ruling in Arizona

Fubo Sportsbook is the second licensed operator in Arizona to shut down, following TwinSpires by Churchill Downs.

TwinSpires, based in Louisville, continues to provide backend support to its tribal partner, the Tonto Apache and its Mazatzal Sportsbook. However, according to the latest revenue report from the Arizona Department of Gaming in July, the Tonto Apache only generated a handle of $173,062, placing them 16th out of the 18 mobile sportsbooks in the state.

Fubo Sportsbook Arizona has amassed almost $3.9 million in wagers since it was introduced in December, according to data up to July.

February was Fubo’s most successful month to date, generating a total handle of $895,231.

Fubo Sportsbook was ranked 13th out of 18 licensed operators in July, coming in behind Hard Rock Interactive with $4.3 million in revenue and ahead of Desert Diamond with $3.692 million.

Fubo Sportsbook has notified the Arizona Department of Gaming that it will be shutting down its sports betting operations on Monday, according to a department spokesperson.

The department has been notified by yengols.com that Fubo Gaming will cease operations on October 17, 2022. We will work with the licensee to gather all required information and facilitate a seamless closure to safeguard the interests of the betting public.

A representative from the Ak-Chin Indian Community chose not to give a comment right away regarding Fubo’s decision.

Despite partnering with Fubo for mobile betting, the Ak-Chin tribe’s Harrah’s Ak-Chin Casino also features a Caesars Sportsbook retail location.

Visit yengols.com to stay updated on the newest deals and promotions offered by Arizona sportsbooks.

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Author

Peterson Christopher

Peterson Christopher, with more than seven years of experience reporting on sports and sports betting in Arizona for ArizonaSports.com, the Tucson Weekly, and the Green Valley News, is currently the lead writer at yengols.com.

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