FuboTV Vigtory Acquisition: Jumping Into Sports Betting

Fubo saw its share prices rise significantly this week after the group announced that it would be acquiring the sports betting and interactive gaming company Vigtory and integrating it with its streaming service, FuboTV.

In a press release, Fubo said that there are plans in the pipeline to launch Fubo sportsbook this year by blending the two businesses.

Who is FuboTV?

Founded in 2015, Fubo began as a soccer streaming service before adding more broadcast and cable feeds. Last fall, the company launched its IPO, and since then, its stock price has more than tripled. This week’s announcement of a binding letter of intent to purchase the sports betting company, Vigtory, share prices jumped by more than 34%.

Fubo is one of the leading sports-first live TV streaming platforms, offering subscribers access to tens of thousands of live sporting events. It trails Hulu, YouTube, and others, but it ranks as one of the more popular internet-delivered bundles.

According to Deadline, the company recently disclosed its preliminary Q4 results, reporting over half a million paid subscribers in its end-of-year report, which indicates a year-on-year growth of 72%.

Wall Street analysts predict that FuboTV will hit 3 million subscribers by 2025.

And who is Vigtory?

Digital sports entrepreneur Sam Rattner founded the sports betting and interactive gaming company Vigtory in 2019, with SeventySix Capital’s backing. Rattner is a well-known sports betting content and technology developer with many years of experience in the industry.

Last year, Rattner was joined by Scott Butera, the former president of interactive gaming at MGM Resorts International, who helped launch BetMGM.  He now serves as Vigtory’s co-CEO.

Fubo’s Slow Build to Sports Betting

Last year, Fubo purchased the Californian-based technology startup Balto Sports, which develops tools for users to organize and play fantasy sports games. Further, its reputation for streaming international soccer should serve as a valuable asset as it integrates sports betting.

Vigtory has access to Iowa’s sports betting market via Casino Queen and is licensed by the Iowa Racing and Gaming Commission, but has not yet launched operations. 

Beyond that, Fubo has not released many details regarding the terms of the acquisition deal. 

The acquisition is “subject to the execution of a final acquisition agreement and the satisfaction of certain closing agreements,” according to the press release. FuboTV expects to close the deal in the first quarter of this year.

Both Butera and Rattner will enter FuboTV’s gaming division as president and COO, respectively.

FuboTV’s Sports Betting Plans for the Future

FuboTV says its acquisition of Vigtory paves the way for the streaming service to enter the sports betting space directly as an operator rather than partnering with an existing sports betting provider.

Step one is to launch a free-to-play gaming platform powered by the previously acquired Balto Sports. Altogether, FuboTV’s free-to-play games, live streaming service, and sportsbook will provide the company many cross-selling opportunities.

”We believe online sports wagering is a highly complementary business to our sports-first live TV streaming platform,” said David Gandler, CEO of fuboTV. “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. Our free-to-play gaming experience, which will be available to all consumers, will build further scale to fuboTV, essentially acting as another lead generator for driving subscribers to our streaming video platform and, ultimately, our sportsbook.

“We not only expect sports wagering to become a new line of business and source of revenue, but we also expect that it will increase user engagement on fuboTV resulting in higher ad monetization, better subscriber retention, and reduced subscriber acquisition costs.”

Fubo plans to ride on Vigtory’s access to Iowa’s sports betting market to expand into other US states where sports betting is legal and regulated.

Vigtory’s Butera described his company’s acquisition as a “pivotal event in the sports entertainment industry.” He said that sports betting and related businesses such as online gambling and free-to-play contests have become a critical component of fan engagement as sports fans increasingly desire interactive sports events.

“Combining fuboTV’s broad and deep offering of live-streamed sporting events with Vigtory’s world-class sports betting products creates the ultimate sports betting experience for consumers,” he said.

Media Companies Partnering with Existing Sportsbooks is Nothing New

This is the latest example of a trend for media companies to join forces with sportsbooks in a bid to tap into a market estimated to be worth $150 billion by 2024.

In addition to the Fubo-Vigtory tie-up, here’s an incomplete list of media-sports betting partnerships:

• In September last year, ESPN went on a partnership-signing frenzy, inking separate multi-year deals with DraftKings and Caesars to cover daily fantasy sports and sports betting.
• In November 2020, Sinclair Broadcast Group signed a ten-year $85 million deal with Bally’s Corporation. Under the terms of the deal, the 21 Fox Sports regional sports networks will rebrand to Bally’s Sports.
• NBC Sports announced that PointsBet would become its official sports betting partner in a deal worth $500 million.