Betsson, the Swedish online gaming giant, will cease operations of its Betsafe sportsbook in Colorado by the end of September 2024, marking its exit from the U.S. sports betting market. The closure ends Betsson’s first U.S. sportsbook venture, which began in March 2022 through a partnership with Dostal Alley Casino.
Betsson used Betsafe as a consumer-facing platform, but the sportsbook primarily served to demonstrate the company’s B2B technology in the North American market. A spokesperson for Betsson confirmed that the Colorado operations had provided valuable insights into the dynamics of U.S. online sports betting, but the company will no longer offer B2C services in the U.S. for the foreseeable future.
“Betsson has decided to discontinue its B2C operations in Colorado at the end of September 2024,” the spokesperson said. “For the foreseeable future, we will not have any B2C offering in the U.S.”
Betsafe’s exit follows a broader trend of smaller operators withdrawing from the highly competitive U.S. sports betting landscape. Recently, other companies such as ClutchBet, WynnBet, Fubo Sportsbook, and Betway have also shuttered operations in Colorado.
Betsafe will stop accepting deposits and new account registrations as of September 6, and no wagers will be accepted after September 16. Customers have until September 27 to withdraw funds, after which all accounts will be permanently closed on September 30.
Despite the U.S. withdrawal, Betsson will continue to operate its Betsafe brand in Ontario, Canada, and recently expanded into South America with a license in Peru.
Lance Agostino, Betsson’s U.S. Account Director, previously emphasized that the Betsafe launch was aimed at establishing a foothold in the North American market. “We knew our strengths as a large operator and what it was going to take to get into the market… We decided it was probably more pragmatic and faster to go ahead and get live ourselves with the Betsafe brand,” Agostino said at launch.
The sports betting sector in Colorado remains crowded, with over a dozen active operators. Still, the exits of Betsafe and other smaller players highlight the challenges of sustaining operations in a highly regulated and competitive environment.
ClutchBet, another recent departure from the U.S. market, cited slower-than-expected regulation and hindered growth as factors behind its decision to exit. “The decision to exit the U.S. comes as slower-than-expected regulation has hampered total market growth and hindered interest in the company’s B2B SaaS platform,” the company said in a statement.
Original article: https://www.yogonet.com/international/noticias/2024/09/04/77621-betsson-to-shut-down-betsafe-sportsbook-in-colorado-by-end-of-september
