In another example of the consolidation of the domestic online sports betting market, Super Group announced it will exit U.S. operations in its seven mobile sports betting states through its subsidiary Betway.
Pulling Up Stakes
Super Group, headquartered in Guernsey, and the parent company of online sports betting brand Betway, has concluded a comprehensive internal probe of its U.S. operations. The results have led them to announce that Betway will be exiting its sports betting markets in multiple US states: Arizona, Colorado, Indiana, Iowa, New Jersey, Ohio, Pennsylvania, and Virginia.
However, the company has also stated it will remain in its two iGaming markets, New Jersey, and Pennsylvania through its online casino gaming arm, Spin.
Chief Executive Officer Neal Menashe stated: “As a global business, we constantly evaluate the optimal use of our resources across all markets in which we operate. We have recently concluded an extensive review of our U.S. operations and, at present, we do not see a long-term path to profitability for the sportsbook product.”
“The vast majority of Super Group’s revenue is generated in iGaming and, in line with that strategy, we will continue to offer our leading casino product in New Jersey and Pennsylvania. We are open to expanding our U.S. footprint if the right investment or strategic opportunities arise.”
The company will work with regulators in each of the states to facilitate a smooth transition out of the market and will assume all charges related to its departure. The expenses related to the exit are not expected to impact non-U.S. markets or its operations within them.
More Sportsbooks Leaving the U.S.
Betway is the latest to make a break from the U.S. sports betting market but others have already announced their departures. Recently, LeoVegas, a subsidiary of MGM Resorts, announced its acquisition of Malta-based Tipico’s U.S. assets operating in Colorado, Iowa, New Jersey, and Ohio.
Gary Fritz, president of MGM Resorts Interactive, commented, “The acquisition of Tipico’s award-winning U.S. platform marks a significant milestone in the strategic development of MGM Resorts’ global digital gaming business, allowing us to operate a proprietary sports betting platform. This acquisition gives us control of our entire technology ecosystem, and we are delighted to bring Tipico’s U.S. team, with their track record of developing high-quality product and pricing capabilities, into our business.”
Adrian Vella, CEO of Tipico U.S., shared Fritz’s enthusiasm, stating: “After an exciting journey of constant development, progress, and unwavering belief in creating an excellent product offering, today marks the start of a new interesting chapter. Tipico has proven in one of the most competitive markets in the world that we can build proprietary technological solutions, whilst running sophisticated lean operations. Our rise from a start-up to an award-winning platform makes me very proud and I want to thank all my team, who made this story possible.”
In another related piece of sports betting industry news, Hard Rock Digital recently announced its purchase of some of Evoke’s U.S. assets (formerly 888 Holdings). Evoke is expected to wind down operations by the end of this year in Colorado, Michigan, New Jersey (888casino), and Virginia.
