FuboTV Bets On Sports Gambling
Online sports betting is growing in the U.S.
This last year, while the world has been hunkered down under the strain of the Covid pandemic, a completely unrelated burst of stock investment activity has risen around gambling online in the U.S. There is a long and complicated history of online poker and online gambling in the U.S. But in the last few years, due to a major U.S. Supreme Court decision, the States have been allowed to legalize online sports gambling. Companies like DraftKings, FanDuel, Fox.Bet, Skillz and others have benefited from this trend.
Today another company expanded into sports gambling, when FuboTV, the live sports streaming platform, announced its intent to acquire sports betting tech company Vigtory. In the official press release it was indicated that FuboTV “expects to launch a sportsbook before the end of the year.” As a major sports media outlet, Fubo will be well positioned to promote their own sports betting product.
Sports on TV is the “great American pastime”.
Forbes.com contributor, Beth Kindig, wrote a foresightful article in December where she highlighted the attractive nature of FuboTV’s stock and wrote about the likelihood of Fubo moving into sports gambling. The stock has more than doubled since then.
Fubo’s press release said, “We believe online sports wagering is a highly complementary business to our sports-first live TV streaming platform”
Vigtory was founded in 2019 by Sam Rattner and backed by SeventySix Capital. Rattner is a well-regarded digital sports entrepreneur and SeventySix Capital is a successful investment firm with deep interests in sports and related fields.
Fubo shared more of their product plans in their press release:
“Additionally, FuboTV announced today more details of its online wagering strategy, further positioning itself to enter what Zion Market Research estimates will become a $155 billion industry by 2024. Through its December 2020 acquisition of Balto Sports and its content automation software, FuboTV intends to launch a free to play gaming experience this summer. Free to play gaming, which will be available to all consumers whether or not they are FuboTV subscribers, will first launch in a standalone app and later be integrated directly into the FuboTV user experience. By leveraging the Vigtory and Balto acquisitions, FuboTV intends to launch a sportsbook app where consumers can see current betting lines, place a variety of wagers, cash in their winnings and much more across sports they love. Finally, the company expects to integrate the sportsbook into FuboTV’s live TV streaming platform for a seamless viewing and wagering experience.”
FuboTV recently shared preliminary Q4 2020 results, indicating it will exceed 545,000 paid subscribers in 2020, a 72% increase year-over-year.