Streaming platform fuboTV has documented plans to acquire sports betting and interactive gaming company Vigtory, and expects to launch a sportsbook before the end of the year.
The acquisition, terms of which have not been disclosed, is subject to the execution of a definitive acquisition agreement and the satisfaction of certain closing conditions, and is expected to close in the first quarter of 2021.
The company says that it intends to leverage Vigtory’s sportsbook platform and digital gaming assets, and its consumer-driven betting technology, to develop a frictionless betting experience for customers.
Furthermore, Vigtory has also been in discussions for market access agreements in the eastern part of the United States, and currently boasts a deal in Iowa through Casino Queen. This pipeline of market access agreements are also absorbed via the proposed transaction.
“We believe online sports wagering is a highly complementary business to our sports-first live TV streaming platform,” explained David Gandler, co-founder and CEO, 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 monetisation, better subscriber retention and reduced subscriber acquisition costs.”
Under the acquisition, both Sam Rattner, founder of Vigtory, and Scott Butera, former president of interactive gaming at MGM Resorts International who aligned with Vigtory as Rattner’s co-CEO in 2020, will join fuboTV’s gaming division as president and COO, respectively.
“The addition of Vigtory to fuboTV is a pivotal event in the sports entertainment industry,” said Butera. “As sports fans increasingly desire interactive sports events, sports betting and related businesses such as igaming and free to play contests have become a critical component of fan engagement.
“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.”