US streaming service FuboTV has acquired sports betting and gaming firm Vigtory as part of an ambitious plan to enter the burgeoning American gambling market.
The financial terms of the deal have not been fully revealed, but it has been confirmed that the streaming service will incorporate Vigtory’s sportsbook and digital gaming operations.
It has also been confirmed that Vigotry founder, Sam Rather, and Co-Chief Executive, Scott Butera, will become the Chief Operating Officer and President of FuboTV’s emerging gambling division, respectively.
Prior to establishing Vigtory, Rather founded Engine Sports, a back-testing engine creating algorithmic strategies for retail sports bettors, whilst Butera previously served as Commissioner of the Arena Football League and President of Interactive Gaming at MGM Resorts.
“I have followed FuboTV since its launch in 2015 and am impressed that this talented team has established itself as a leader in live TV streaming,” said Rattner.
“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.”
The acquisition of Vigtory represents the next stage in FuboTV’s sportsbook expansion plans, having taken control of Balto Sports in December 2020, with the stated intention of launching a free-to-play gaming service for its customers in summer 2021.
David Gandler, Chief Executive and co-founder of FuboTV, 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.”
News of the acquisition has led to the company’s shares skyrocketing in value by over 34%. The firm now has a market cap of over $2.5 billion.
Furthermore, the streaming service boasts over 545,000 subscribers, representing a yearly increase of 72%.
Gandler continued “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.”