The firm said in a statement today (10 July) it would close its sportsbook operations in the nine states where it is currently live, as CEO Neal Menashe said it did not see a long-term path to profitability.
The Betway brand is currently live in Pennsylvania, Iowa, New Jersey, Arizona, Colorado, Indiana, Virginia, Ohio and Louisiana.
The group’s online gambling offering in New Jersey and Pennsylvania will remain, with a focus on two brands from its Spin portfolio, including its Jackpot City brand.
“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 US footprint if the right investment or strategic opportunities arise,” Menashe said.
The firm expects to incur the costs from shuttering these operations in its Q2 results. It does not expect related costs to have any impact of the group’s capital allocation plans.
Super Group acquired Digital Gaming Corporation, which held the US rights to the Betway brand in January last year. At the time, DGC was already live with Betway in eight states. Louisiana was launched in Q1 2023, following the closure of the DGC acquisition.
The deal was agreed in January 2022 and sought to give Super Group an entry into the US market.
US exit warning in Q1 results
Manashe hinted at the firm’s exit during the group’s Q1 earnings analyst call. “We are not happy with the status quo,” he said at the time.
“Nothing is off the table at this stage, and it ranges from say, a complete exit all the way to status quo and everything in between.
“For us, really, the US states are no different to the countries. If we can see a way to profitability, we will then do them. And if we can’t, then we have to take other action.”
The US betting market has started to shrink as operators grapple with the likes of FanDuel, DraftKings and BetMGM as leading brands with significant market shares.
Mass exodus from the States?
Super Group joins Kindred, Tipico and 888 in exiting the challenging region via various channels. Kindred shuttered its entire US operations earlier this year, which included offices in New York and New Jersey.
Tipico’s sports betting business was bought in June by MGM to bolster LeoVegas’ betting technology in various international markets outside of the US.
Meanwhile 888’s US assets were acquired by Hard Rock Digital in March. Betfred also announced its exit from Maryland on 21 June.
Original article: https://igamingbusiness.com/sports-betting/online-sports-betting/super-group-exits-us/
