Shares of fuboTV (FUBO) - Get Report jumped Tuesday after the sports-first live-television-streaming platform said it agreed to acquired sports-betting company Vigtory with plans to launch a sportsbook this year.
Terms weren't disclosed. FuboTV expects to close the deal in the first quarter, subject to conditions it didn't specify.
At last check fuboTV shares were 15% higher at $31.21.
"We believe online sports wagering is a highly complementary business to our sports-first live-TV-streaming platform," David Gandler, fuboTV's co-founder and CEO, said in a statement.
"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."
FuboTV says it plans to leverage Vigtory's sportsbook platform and digital gaming assets to develop a "frictionless betting experience for fubo's customers."
Vigtory, founded in 2019 by Sam Rattner and backed by the Conshohocken, Pa., venture-capital firm SeventySix Capital, has been in discussions for market access agreements in the eastern U.S. Vigtory currently has a deal for a sportsbook in Iowa through Casino Queen.
Under the agreement, both Rattner and co-CEO Scott Butera will join fuboTV's gaming division as president and chief operating officer, respectively.
FuboTV plans to launch a free-to-play gaming experience this summer through its December 2020 acquisition of Balto Sports and its content automation software.
Free-to-play gaming will be available to all customers, not just fuboTV subscribers. And the service will enable consumers to see current betting lines, place wagers and cash in their winnings, among other features.
The free-to-play gaming "will build further scale to fuboTV, essentially acting as another lead generator for driving subscribers to our streaming video platform and, ultimately, our sportsbook," fuboTV's Gandler said.