FuboTV (NYSE: FUBO) saw massive stock gains early Tuesday as they agreed to purchase sportsbook startup Vigtory. The purchase signals another company that is adding itself to the massive US online sports betting market. The expectation is that FuboTV will launch Vigtory Sportsbook before the end of 2021.
The terms of the deal were not disclosed, but this is a huge move for FuboTV. FuboTV had been struggling prior to this purchase as the market has become saturated with YouTube TV and Hulu+ Live TV taking market share. Pivoting to the sportsbook space should help their business bring in new customers. Cross-platform marketing on their sportsbook could help bring sports fans to the TV product to watch big games and vice-versa.
FuboTV reaped the benefits immediately; this purchase helped their stock grow by an astounding 34% prior to the end of day trading. FuboTV’s stock now trades at $36 a share after being $26 a share just one day prior.
What Is Vigtory Sportsbook?
Vigtory is marketed directly towards the bettor for offering little to no vigorish on their average bets. Currently, Vigtory is not yet operating as a sportsbook but FuboTV should help them take the next steps towards a launch.
Many sportsbooks offer typical bets at -110 instead of +100. The reason for this is sportsbooks charge a “vig” or a fee for taking your bet. This usually ranges anywhere between 3%-5% on a given bet depending on the sportsbook. Moreover, the vig gives the sportsbook a substantial amount of additional revenue while clearly cutting into the sports bettors’ profit.
Removal of this fee could bring in plenty of sports bettors who are seeking increased profits. No other sportsbook offers these kinds of advantages, giving the fan obvious appeal and reason to join.
Where Will Vigtory Sportsbook Launch?
Vigtory Sportsbook is a startup company that is yet to launch in any capacity. However, Co-CEO Scott Butera has previously announced the company’s intent to launch in New Jersey.
Other than New Jersey, Vigtory Sportsbook will have the opportunity to launch in Illinois. They are currently headquartered in Chicago, so there will be a clear tie to the Midwest and the Prairie State as a whole.
FuboTV is headquartered in New York where sports betting has been increasingly likely to legalize early in 2021. The opportunity to gain market access to a huge state like New York could give Vigtory Sportsbook the notoriety to create brand name recognition and carve out an audience in a crowded industry.