Online streaming company FuboTV has announced that has closed down its online sports betting business, Fubo Gaming, citing a challenging financial market as the reason for its exit.
In a statement released following the announcement of its preliminary third quarter financial results, the company said:
“Following our previously announced strategic review, we have concluded that continuing with Fubo Gaming and Fubo Sportsbook in this challenging macroeconomic environment would impact our ability to reach our longer term profitability goals.”
The company also sent out a letter to investors revealing that it had filed a Certificate of Dissolution to the Delaware Secretary of State. According to that letter, now that the company has dissolved, it does not ‘foresee a scenario in which it will have any remaining assets to distribute to its few remaining creditors’.
The announcement of the dissolution and lack of assets comes on the same day that Fubo Gaming’s parent company FuboTV announced a 34% increase in profitability for the third quarter of 2022.
It’s unclear whether or not Fubo Gaming users will be reimbursed for any funds that were in their accounts at the time of the dissolution as was the case with TwinSpires and theScore when they shuttered their US sports betting businesses.
Co-founder and CEO of FuboTV, David Gandler, is expected to offer comments on the online sports wagering withdrawal when he holds a third quarter analyst call on Nov. 4.
Based in London, Natasha is a former sports journalist with experience working for some of the biggest athletes & brands in the world of sports and iGaming.