In yet another in a series of examples of market consolidation within the mobile sports betting industry, BetSafe has become the most recent casualty in Colorado.
Over and Out
BetSafe has decided to call it quits in Colorado and will be accepting its last wager in the Centennial State on September 16th and closing all accounts by September 30th. The news comes hot off the heels of ClutchBet announcing its exit from Colorado and the U.S. mobile sports betting market.
With the departure of BetSafe and ClutchBet, the number of online sportsbooks in Colorado will decrease from 19 to 17 by the beginning of October. The duo joins Super Group’s Betway Sportsbook, Wynn Sportsbook, and Betfred with all three having also recently pulled out of the Colorado market.
The official adieu came in the form of an email to its customers last Saturday:
Dear BetSafe customers,
Please be advised that Colorado BetSafe sportsbook mobile app will permanently close on September 30, 2024.
Registrations and deposits will not be accepted after September 6, 2024, and new bets cannot be placed after September 16, 2024.
You will need to withdraw all your funds by September 27, 2024. All accounts will be closed on September 30, 2024.
If you have any questions, please contact customer service.
More to Come?
Colorado has seen a mass exodus of mobile sportsbooks recently but the duopoly of FanDuel and DraftKings continues to dominate nationwide with roughly 75% of the market while the rest of the sportsbooks are fighting for the remaining scraps. Well-known sportsbooks like Caesars, BetMGM, and Fanatics have recently been joined by Penn Entertainment’s billion-dollar gamble, ESPN BET as examples of the Tier-Two brands.
Therefore, the smaller, niche brands like BetSafe are finding the margins too small to survive. Even the well-established international gaming brand, PointsBet, has pulled out of the U.S. market after selling its domestic assets to Fanatics Betting & Gaming.
However, Brendan Bussmann, the managing partner at B Global, believes there is still hope for the smaller books to survive.
“Those with land-based ties still will be able to make a regional impact even if they are not part of the big five,” Bussmann said. “This will mirror what we see in the gaming space today. But you never know when one of those may catch fire and be able to compete on the big stage.”
And despite the failures of so many smaller sportsbooks in Colorado, it is not deterring Jake Paul’s Betr from entering, while another little-known entity, Novig, is poised to launch a sportsbook that will eventually feature a sports betting exchange in Colorado.
Novig CEO Jacob Fortinsky recently spoke enthusiastically about his company’s foray into the Colorado market. “We’re thrilled to introduce our commission-free sports betting app to the vibrant community of Colorado. Novig is committed to delivering a seamless and cost-effective platform that enhances the enjoyment of sports betting.
“Using Novig really should be a no-brainer for sports bettors. We’re offering the same betting experience users are accustomed to, but better prices, faster in-game trading, more transparency, and a number of innovative features like liquidity screens, position tracking, and partial cash outs,” Fortinsky added.
