The deal is the second acquisition of a sports betting provider within a few months.
fuboTV (NYSE:FUBO) is moving into a very promising corner of the sports market. The company announced Tuesday that it has reached an agreement with sports betting and gaming specialist Vigtory. FuboTV expects to launch a sports betting service by the end of the year.
Neither the price nor the terms of the deal were disclosed.
Vigtory is a relatively new company that was founded in 2019. Not coincidentally, it happened amid a wave of legalisation of sports betting in the US. That wave has yet to break, as the coronavirus pandemic has strained the finances of many states; at least some of them will likely have to legalise sports betting entirely to generate more tax revenue.
fuboTV is determined to be competitive in this segment. Last month, it acquired another sports betting tech company, Balto Sports. In press releases announcing both the Balto deal and the Vigtory deal, fuboTV cites a Zion Market Research estimate that the online sports betting market will be worth $155 billion by 2024.
“We believe online sports betting is a very complementary business to our live sports TV streaming platform,” the company quotes its CEO David Gandler as saying in the Vigtory press release. “We don’t see betting as simply an add-on product so fuboTV. Instead, we believe it is a real addition to, streamed video content and the interactivity it creates will provide new opportunities.”
Investors in fuboTV seem to think so too. On Tuesday, the company’s stock shot up 34%, outperforming the S&P 500 Index.