FuboTV’s surprise announcement yesterday that it will cease all operations of Fubo Sportsbook has thrown Ohio online sports betting its first major curveball ahead of the Jan. 1, 2023, launch.

Fubo Sportsbook would have been the centerpiece of the Cleveland Cavaliers online sports betting plans, as the NBA franchise had listed the online sports betting operator as its official mobile management service provider in its conditionally approved Type A sports betting license application.

Now, the Cavaliers have a conditionally approved online sports betting license, but no online sports betting operator to run its services.

“We are currently reviewing our mobile sports betting partnership with Fubo Gaming and FuboTV. We will proceed accordingly after gathering more information,” a representative from the Cavaliers told Saturday Tradition.

Cavaliers online sports betting in flux

It’s unlikely that the Cavaliers will be able to launch their online sports betting service by Ohio’s universal launch date of Jan. 1, 2023, according to an Ohio Casino Control Commission representative.

Jessica Franks, Communications Director for the Ohio Casino Control Commission, told Saturday Tradition that the Cavaliers have no specific deadline to name a new mobile management operator. When the Cavs do announce a new partner, they will need to inform the Ohio Casino Control Commission within 10 days.

As of today, the commission is still waiting to hear from the Cavaliers on their next course of action, she said.

“I find it very unlikely they will be able to get us a complete application and submit all of the necessary regulatory requirements for that launch,” Franks told Saturday Tradition.

However, this will not affect the Cavaliers ability to open their planned retail sportsbook at Rocket Mortgage Fieldhouse, she said. The Cavaliers partnered with Caesars Sportsbook to run the retail sportsbooks at their arena.

The Cavaliers received conditional approval of their Type A sports betting license from the Ohio Casino Control Commission on Sept. 21. The Cavaliers included Fubo Sportsbook as their “mobile management service provider” in their application and did not have a secondary provider.

Fubo Sportsbook, interestingly, had not yet received approval from the Ohio Casino Control Commission to act as a “mobile management service provider” in the state.

Fubo Sportsbook closes up shop

It was a surprising turn of events for the Cavaliers, as the sportsbook abruptly announced it would cease operations during a presentation of FuboTV’s preliminary Q3 2022 results. In a release, the company noted it would be closing its Fubo Gaming subsidiary and cease operation of its sportsbook immediately.

“Following our previously announced strategic review, we have concluded that continuing with Fubo Gaming and Fubo Sportsbook in this challenging macroeconomic environment would impact our ability to reach our longer term profitability goals. Therefore, we have made the difficult decision to exit the online sports wagering business effective immediately,” said David Gandler, co-found and CEO, FuboTV.

In addition to its partnership with the Cleveland Cavaliers, Fubo Sportsbook had active partnerships with the New York Jets, NASCAR, and a joint partnership with the Houston Dynamo and Houston Dash.