MaximBet announces end of sportsbook operations

A second promising sportsbook has closed doors in the United States, busting the myth that it’s all going to be a heady growth for businesses who manage to secure license and hit the ground running in the newly-regulated sports wagering market. MaximBet follows in the footsteps of Fubo Sportsbook which shuttered surprisingly in October.

Now, MaximBet has revealed plans to cease operations itself. The company gave an official statement in which it detailed the challenging macroeconomic conditions which have made it impossible for the company to continue operating.

"It is with regret that, effective immediately, MaximBet will cease operations," MaximBet said in a statement, and added that the cost-prohibitive markets have accelerated the need to reach the decision. All sports wagers were suspended on Wednesday, November 16, but the company will allow bets to be settled through December 15.

Meanwhile, any open future positions will be reimbursed at a "fair market value," the company explained. Should players fail to withdraw their money, MaximBet will mail a check back to their given address. The company made a promising start in 2021, using the prominence of the luxury brand and hoping that it can bring sports, entertainment and betting together to appeal to the masses.

At first, the company made the impression of quickly gaining momentum in some interesting markets, such as Colorado, but the behind-the-scenes picture must have been different. Even an endorsement by Nicki Minaj, a prominent artist, did not help MaximBet much in its pursuit of better revenue and interest.

The company explained that even though it showed a lot of promise, the market remained very difficult with costs almost exclusively exceeding revenue, making the venture hard to operate. Presently, the company will focus on winding down its operations and assisting customers in Indiana and Colorado disembark from the platform in the best and safest way possible.

This is not the first time companies have raised concerns over the stiff competition in the market. In New York, operators gripes about the mounting costs of pushing their promotions and offers, while facing a hefty tax from the state.

Many have chosen to use alternative channels and not bother too much about big bonuses as a result. MaximBet and Fubo Sportsbook’s experiences show just how difficult the nature of sports betting in the United States is if you are a new business hoping to make the most of it.

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