Last updated on July 13th, 2024 at 04:26 am
After an extensive internal review, Betway’s parent company, Super Group, is withdrawing from the US sports betting market. The company said it doesn’t see long-term profitability from the US market. It’s shutting down sports betting in these nine states: Pennsylvania, New Jersey, Iowa, Arizona, Colorado, Virginia, Louisiana, Ohio, and Indiana.
Super Group has withdrawn from the US sports betting market. However, its online gaming platform will still operate in Pennsylvania and New Jersey. The company will continue to focus on its successful brands, Jackpot City and Spin, ensuring a seamless gaming experience for its users.
The costs of winding down sports wagering operations in nine states will likely impact Super Group’s Q2 results. However, as gambling software providers confirm, these expenditures are not expected to affect the group’s capital allocation strategies.
Super Group Exits from the US Sports Betting Market
Last January, Super Group bought out Digital Gaming Corporation, the owner of the Betway trademark in the United States. Eight states had previously gone live with DGC through Betway. Louisiana was launched in the first quarter of 2023 when the DGC transaction was closed. In January 2022, the parties agreed to allow Super Group to join the American market.
According to bookie PPH experts, Super Group CEO Neal Manashe dropped hints about the company’s impending departure on the first quarter results analyst call. Operators in the US betting sector are starting to feel the pinch as they try to compete with dominant brands like FanDuel, DraftKings, and BetMGM.
Illinois had three licenses for mobile sports betting that could only be obtained online, and Betway had applied for one of them twice before dropping out. For the second time in over a year, it withdrew in October last year after being designated a candidate for the $20 million license.
Exodus from the United States
Super Group has joined Kindred, Tipico, and 888 in a coordinated effort to leave the problematic area. Earlier this year, Kindred shut down all its US operations, including its New York and New Jersey headquarters. In June, MGM acquired Tipico’s sports betting division to supplement LeoVegas’ betting technology in non-US foreign markets.
In March, Hard Rock Digital bought 888’s US assets. Betfred also announced that it would leave Maryland on June 21st.
Super Group also announced that its management would discuss the anticipated expenses related to the shutdown of its US sportsbook activity during the upcoming quarterly earnings call in early August.
According to the operator’s May financial statement, Super Group’s revenue in Q1 2024 was €379.3m, up 12% year over year from €338.5m in Q1 2023. Total revenue for the quarter was €374 million, an increase of 13% year over year, excluding US activities.
The group’s adjusted EBITDA for its US businesses was €22 million, while the overall adjusted EBITDA for the quarter was €46.5 million, a 29 percent year-over-year improvement from €36.1 million in 2023.
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