FuboTV aims to combine sports betting and streaming with Vigtory acquisition
OTT platform inks undisclosed deal for start-up sportsbook technology as it looks to grow in nascent US market
Live sports streaming platform fuboTV has put pen to paper on a binding letter of intent to acquire sports betting company Vigtory.
The New York-listed firm confirmed its intentions to venture into online sports betting in H2 2020 and has calcified those comments with its latest M&A move.
Terms of the deal were not disclosed, and the acquisition remains subject to certain conditions, although the deal is expected to close in Q1.
Via the agreement, fuboTV is hoping to launch a sportsbook before the end of the year, leveraging Vigtory’s platform and online assets.
FuboTV expects to eventually integrate the sportsbook into its live streaming platform for a “seamless viewing and wagering experience”.
Vigtory, which was founded in 2019 by Sam Rattner, already holds market access in Iowa thanks to a partnership with Casino Queen.
FuboTV confirmed that Vigtory has been in discussions regarding market access agreements across the eastern part of the US.
Rattner and his Vigtory co-CEO Scott Butera, who was president of interactive gaming at MGM Resorts before joining fuboTV in 2020, will become C-level executives at the streaming company.
Rattner will serve as the president of fuboTV’s new gaming division, while Butera will act as COO.
David Gandler, fuboTV CEO, said: “We believe online sports wagering is a highly complementary business to our sports-first live TV streaming platform.
“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.
“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 monetisation, better subscriber retention and reduced subscriber acquisition costs,” he added.
Rattner said: “FuboTV and Vigtory share a common vision of developing great products based on great technology, all while being laser-focused on the consumer.
“To have the unique opportunity of integrating Vigtory’s innovative digital betting applications into live streaming, a leading vertical in how fans consume sports, is an unprecedented opportunity in the digital gaming market,” he added.
In December, fuboTV made its first inroads into launching sports betting after acquiring technology platform Balto Sports to facilitate the launch of a free-to-play product, which it intends to roll out this summer.
Elsewhere, Entain CEO Shay Segev has agreed a lucrative deal to join sports streaming rival DAZN as co-CEO.