Online streaming company FuboTV has announced the closure of its online sports betting business, Fubo Gaming, citing a tough financial market as the reason for its exit.
In a press release issued following the announcement of its preliminary third quarter financial results, the company said:
“Following our previously announced strategic review, we have concluded that the continuation of Fubo Gaming and Fubo Sportsbook in this difficult macroeconomic environment would impact our ability to meet our longer-term profitability objectives.”
The company also sent a letter to investors revealing that it had filed a certificate of dissolution with the Delaware Secretary of State. According to the letter, now that the company has been dissolved, it “does not envision a scenario in which it would 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 is unclear whether or not Fubo Gaming users will be refunded for funds that were in their accounts at the time of dissolution, as was the case with TwinSpires and theScore when they closed their sports betting businesses. in the USA.
FuboTV co-founder and CEO David Gandler is expected to comment on the withdrawal of online sports betting during his third quarter analyst conference call on November 4.