The abrupt end of Fubo Gaming means the Cleveland Cavaliers have lost their partner for online sports betting in Ohio.
FuboTV Inc. announced on Monday that it was closing its online-gaming subsidiary and shutting down its Fubo Sportsbook amid challenging economic conditions and after a strategic review failed to produce a worthwhile solution for the business.
The announcement came about a year after Fubo Gaming announced a "long-term partnership" with the National Basketball Association's Cleveland Cavaliers.
Licensing, interrupted
Fubo Gaming, which was launched in 2021, also applied in July of this year to be the mobile management services provider for the Cavaliers in Ohio, a move that could have allowed the company to offer online sports betting in the state on behalf of the team.
Ohio’s sports-betting law initially allows for up to 25 online sports betting licenses for “proprietors,” such as a casino or sports team, who can partner with up to two mobile management services providers, such as Fubo.
The Ohio Casino Control Commission has not yet approved Fubo's license application. In response to questions from Covers regarding the Cavs partnership and their Ohio plans, a company spokesperson said they have no further information to share.
What happens now?
Meanwhile, the casino control commission's registry shows that the Cavs do not have another online service provider proposed at this point for Ohio.
However, the team has already received conditional approval for their online sportsbook proprietor license (which is connected to Fubo) and for a brick-and-mortar sportsbook license. Caesars Sportsbook has received conditional approval from the casino control commission to run the retail sportsbook for the team.
"We are currently reviewing our mobile sports betting partnership with Fubo Gaming and FuboTV," the Cavs said in a statement to Covers. "We will proceed accordingly after gathering more information."
In short, though, the shutdown of Fubo Sportsbook leaves one of Ohio’s premier sports franchises without a mobile wagering partner at a crucial time in the Buckeye State. Legal sports betting is scheduled to start in Ohio on January 1, and regulators and operators are busy preparing for that day.
Ohio will be a key market for sportsbook operators as well, given its sizable population and fanbase. The Cavs were also a big prize for Fubo’s fledgling gaming business, which was only taking bets in three states, but is now finished after a relatively short life.
Fubo says that it will no longer accept wagers or deposits, and that open bets will settle according to its house rules. Users will be able to visit the Fubo website (which was down on Tuesday for "maintenance") through November 17 to withdraw their money.
"If you have any funds remaining in your account as of that date, a check for those funds will be mailed to the address on file for your account," the company says. "Please note that a physical check may take 7-14 business days to arrive at your address."
