FuboTV this week unveiled the first demo of its forthcoming US sportsbook.
The streaming company reported Q2 earnings Tuesday evening with a strong spotlight on the Fubo Sportsbook.
That included a 44-second clip debuting the product’s “industry-first” Live Sync functionality.
How does Fubo live sync work?
Essentially the sports betting app is linked to a Fubo streaming account, meaning the app will display markets for whatever the user is watching.
If a user flips from a baseball game to a tennis match on the TV, the app will follow.
“This seamless connection between streaming video and our mobile betting app is a feature we believe only FuboTV can bring to market,” said CEO Dave Gandler. “We believe we are in the early innings of a massive opportunity.”
Sector-leading margins?
Gandler said the crossover product would lower acquisition costs and boost margins.
“We think that the opportunity is pretty sizable,” he said. “Fifty percent gross margins will be our long-term target.”
For comparison, BetMGM guided to 30-35% margins at maturity, including higher-margin online casino.
When will we see Fubo Sportsbook?
Fubo said it is on track for a fourth-quarter launch in 2021. It expects to be live in three states by the end of the year.
The company has gaming access in:
- Pennsylvania
- Iowa
- Indiana
- New Jersey
The app itself will be powered by the Vigtory Sportsbook tech Fubo acquired in January.
What next for Fubo Sportsbook?
The company said previously it will first launch a standalone app, then integrate that into the core Fubo streaming product. A spokesperson confirmed that is still the plan.
However, industry experts question whether that integration actually will be possible.
For one, any product that offers wagering is subject to gaming regulations. That means a more stringent signup process for new customers and added friction for streaming signups.
A company like theScore, for example, had a separate betting app rather than an integrated one.
Will Fubo be theScore 2.0?
Indeed, theScore is an interesting parallel for Fubo as another media brand that aimed to convert users into bettors.
While theScore just sold to Penn National for $2 billion, it had limited success in sports betting.
In the nine months to May 2021, theScore generated negative NGR of $6.9m. It had a 0.03% share of the NJ sports betting market over the last twelve months, per Eilers & Krecjick estimates.
In short, users of theScore and Fubo likely already have sportsbook apps on their phone. They need a better reason to switch away from FanDuel or DraftKings beyond just saving a click.
Marketing mismatch
That is not to mention the size of the competition in US sports betting.
Consider: Fubo has been in business six years and has less than 700,000 active subs. Around 25% of those might be in sports betting states.
Meanwhile, Flutter disclosed yesterday, it has acquired 2.2 million players in three years. Then consider that the market leaders are spending hundreds of millions on marketing.
Can Fubo match that firepower, as it already loses nearly $100 million a quarter?
