Betsson bows out of the US sports bettnig race

Betsson has become the latest brand to withdraw from the highly competitive US sports betting race potentially because of cut-throat competition and worries over the company’s performance.

Much like other operators who have followed a similar course of action in recent months, the company has come to a realization that sustainability and profitability may be out of reach for many years to come, tying up a significant part of the group’s resources.

Betsson leaves the US market, the company confirms

For the longest time, no company wanted to withdraw from the market, with the majority seeming loath to cave into the duopoly enjoyed by DraftKings and FanDuel.

Yet, as time has gone by, the superior market share of the two companies has made it harder for minnows with sprawling international networks to compete.

Many high-profile companies have left ever since, including BlueBet, PointsBet, Betway, and evoke, among others.

Although new ones have appeared in their stead, to wit Fanatics Sportsbook and ESPNBet, they too are facing the harsh market realities, although they admittedly have hefty war chests to brave those.

As to Betsson, the company confirmed in an email to customers that it would be withdrawing from the market in Colorado with the Betsafe brand come the end of September 2024. Starting from this Friday, Betsafe will no longer accept new customers, nor will existing customers be able to place deposits.

All players are urged to withdraw their funds by September 27. The company has not provided details about what would happen to long-term bets placed on the website, but it will most likely require customer support intervention.

The withdrawal of the Betsafe brand is a somewhat expected decision, as the writing has been long on the wall.

For one, the North American region failed to produce any memorable mentions in the company’s financial results, although Betsson will not withdraw the Betsafe brand from the market in Ontario, Canada, for example.

Fighting for market share in US sports betting is increasingly hard

However, Betsafe itself has not been able to expand past the Centennial State, whether because Betsson suspected that the competition would be too fierce, or that it did not want to commit the resources to try vying for market share against well-established competitors.

Betsafe may not be the last brand to withdraw from the US market, with local companies also facing intense pressure.

ESPN Bet, which took the spot of Barstool Sportsbook, has been a reason for concern with mixed feelings between analysts – some hailing it as a dormant behemoth of immense value while others worry it would fizzle out despite its strong branding.

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