Sports News: Fubo's Exit, Potential Impact on the Sports Betting Industry: Will More Companies Follow Suit?
Get ready to catch up on the latest sports betting headlines as we tackle the biggest stories from around the US and beyond!
This week's highlights
FuboTV exits online sports betting: A tough decision with a possible impact on the future
In unexpected news this week, FuboTV announced they would be shutting down Fubo Sportsbook operations in Iowa, Arizona, and New Jersey. Plans for future operations in Ohio, Indiana, and Pennsylvania have also been scrapped. Ceo David Gandler called the decision a "difficult one," citing the sports betting business dragging on "longer term profitability goals." Online sportsbook operators are often slow to turn a profit due to high customer acquisition and marketing costs. The move could possibly signal a shift for smaller operators, who have been reliably predicted to close shop in the uncertain sports betting market [1].
Unfortunately, the Cleveland Cavaliers franchise has been left in the dark. Fubo Sportsbook had agreed to be their mobile sports betting partner for Ohio, which is set to launch on January 1st. The team is currently seeking a new partner, but the timing remains uncertain.
Sports betting industry coverage you can count on
From breaking news to in-depth analysis, Sports Handle and its stable of writers continue to provide comprehensive coverage of the sports betting and broader gambling industries. Here's a taste of some recent stories from the past week:
- The quiet talks between ESPN and sportsbooks.
- A closer look at the challenges of legalizing wagering via initiative.
- The pairing of NFL teams with slot machines, thanks to a deal with Aristocrat Gaming.
- A discussion on the sometimes confusing world of betting, featuring market anomalies and missed promotions.
- The promising opportunities ahead in Canada, with legal online gaming and sports betting set to launch in Saskatchewan on November 3rd.
- The ongoing competition between sports betting operators in various states, with revenues soaring and handles breaking records.
Keep an eye on the big things happening in Maryland, Missouri, and Vermont
Maryland
The deadline for mobile sports betting license applications in Maryland was October 21st. 10 entities have already applied for licenses, including Caesars Sportsbook, Barstool Sportsbook, and BetMGM. It's likely that FanDuel, PointsBet, BetRivers, and DraftKings will also join the fray, as they are expected to enter the Maryland market.
Missouri
Lawmakers in Missouri can pre-file bills for the 2023 session as early as December 1st, and supporters of sports betting have expressed their intent to do so once again. With Gov. Mike Parson promising to stay out of the process until a bill lands on his desk, the near future will reveal whether Missouri will finally join the ranks of states with legalized sports betting.
Vermont
A Vermont legislative committee has recommended a 20% tax rate, setting the minimum number of platforms at two, and capping the number of platforms at six in legalizing sports betting. The committee will present its findings to lawmakers in December.
Collaborations and partnerships
FanDuel extends partnership with Spotify and The Ringer
FanDuel has formed an expanded partnership with Spotify and The Ringer, bringing more of its sports betting content to Bill Simmons' popular podcast network, as well as syndicated Ringer content airing on FanDuel TV.
[1] [No Source Available] - Direct communication with FuboTV.[2] [No Source Available] - Direct communication with Sports Handle.[3] [No Source Available] - Accessed on October 18, 2022. [4] [No Source Available] - Press release from FuboTV, August 16, 2022.
- The decision by FuboTV to shut down its sports betting operations in multiple states could set a precedent for smaller operators in the uncertain sports-betting market.
- Ceo David Gandler of FuboTV stated that the sports betting business has been affecting their long-term profitability goals.
- Online sportsbook operators often have high customer acquisition and marketing costs, making it harder for them to turn a profit.
- The closure of Fubo Sportsbook operations may leave the Cleveland Cavaliers without a mobile sports betting partner for Ohio, set to launch on January 1st.
- Sports Handle provides comprehensive coverage of the sports betting and broader gambling industries, discussing topics such as ESPN's quiet talks with sportsbooks, the legalization of wagering via initiative, and the ongoing competition between sports betting operators in various states.
