FuboTV said it plans a free-to-play gaming launch in the summer, followed by a sports betting offering by the end of the year.
Dreamstime
FuboTV plans to launch a sportsbook by year end. Shares of the live-TV streaming platform were surging on the news Tuesday.
The company (ticker: FUBO) said it would acquire Vigtory, a sports betting and interactive gambling firm. FuboTV plans a free-to-play gaming launch in the summer, followed by a sports betting offering by the end of the year.
With sports betting rolling out in several states—helped as the pandemic led to budget shortfalls—investors have bid up shares of companies tackling online sports betting like DraftKings (DKNG) and Flutter Entertainment (FLTR.Ireland).
FuboTV is a television streaming service that’s geared toward cord-cutters who still want live sports. CEO David Gandler said in a news release that sports betting will be a new source of revenue, while also boosting engagement with the core streaming service. He said that will improve advertisement monetization and subscriber retention while reducing customer acquisition costs.
“We believe online sports wagering is a highly complementary business to our sports-first live TV streaming platform,” Gandler said. “We don’t see wagering as simply an add-on product to FuboTV. Instead, we believe there is a real flywheel opportunity with streaming video content and interactivity.”
Sam Rattner is Vigtory’s co-CEO, along with Scott Butera. Butera previously helped launch MGM Resorts International’s BetMGM sportsbook. They will join FuboTV’s gaming division as chief operating officer and president, respectively.
FuboTV shares are up 16%, at $31.42, on the news. The stock is up about 227% in the past 12 months, though still well off its closing high of $62 on Dec. 22—the day before Rich Greenfield and his team at Lightshed Partners called the stock the “most compelling short” they encountered following a more-than-400% year-to-date run-up.
Write to Connor Smith at [email protected]
