Super Group, the parent company of gaming brands Betway and Spin, announced on Wednesday its decision to exit the U.S. sports betting market following an extensive internal review. The move will impact operations in nine states: Pennsylvania, Iowa, New Jersey, Arizona, Colorado, Indiana, Virginia, Ohio, and Louisiana.
However, the company will continue its iGaming presence in the U.S., focusing on its Spin portfolio brands, including Jackpot City, in New Jersey and Pennsylvania.
“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,” said CEO Neal Menashe.
“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.”
Super Group expects to incur costs and charges associated with the closure, which will be detailed in its next quarterly earnings call in early August. However, these expenses will not affect its capital allocation or operating plans, the company said in a statement. The company’s non-U.S. earnings will remain unaffected by this decision, it added.
Super Group acquired Digital Gaming Corporation, which held U.S. rights to the Betway brand, in January 2023. This acquisition aimed to establish Super Group’s presence in the U.S. market. At the time, DGC was already live with Betway in eight states, while Louisiana was launched following the closure of the acquisition.
The U.S. betting market has become increasingly competitive, with major players like FanDuel, DraftKings, and BetMGM dominating the landscape. Super Group joins a growing list of companies, including Kindred, Tipico, and 888 that have recently exited the U.S. market due to similar challenges.
Original article: https://www.yogonet.com/international/noticias/2024/07/11/73075-super-group-to-exit-us-sports-betting-market
