Betfred‘s U.S. operations may face further reductions after the UK-based sportsbook operator recently announced its exit from three American states, with a complete withdrawal from the U.S. market potentially on the horizon, according to CEO Kresimir Spajic.
Following Betfred’s decision to cease mobile sports betting in Maryland, Ohio, and Colorado, Spajic told EGR that “further downsizing” is likely. As of September 1, Betfred will only be accepting mobile wagers in four states: Arizona, Iowa, Pennsylvania, and Virginia. The company also operates physical sportsbooks in Louisiana, Nevada, and Washington State.
When questioned about Betfred’s long-term viability in the competitive U.S. market, Spajic expressed doubt. “I truly believe that my team and I can create a sustainable business,” he said. “The question is: Can you make a business profitable enough to make sense to continue operating in the U.S. versus putting this effort and investment elsewhere that might yield a bigger return?”
Spajic hinted that the company is working on “groundbreaking projects” but is also seeking to renegotiate existing agreements in other states to explore whether a sustainable and profitable future in the U.S. is possible. He indicated that a decision on Betfred’s future U.S. operations could come by the end of the year, acknowledging that a full exit from the market is “on the table” if sufficient value cannot be found.
Betfred’s potential downsizing or exit from the U.S. market comes amid a broader trend of consolidation in the sports betting industry. Several operators, including SuperBook Sports, WynnBET, Betway, and MaximBET, have either sold their U.S. businesses or significantly scaled back operations in the face of fierce competition and high operating costs. Recent acquisitions include BetMGM’s subsidiary LeoVegas purchasing Tipico and Fanatics buying PointsBet’s U.S. assets.
Original article: https://www.yogonet.com/international/noticias/2024/08/19/75885-betfred-ceo-hints-at-potential-us-exit-amid-downsizing-moves
