Super Group to fold US sportsbook operations

Super Group, the iconic gambling company behind the popular Betway brand, has confirmed in a press statement that it is pulling the plug on its US sports betting operations, as the market competition continues to intensify and companies decide against running locally.

Super Group follows that of a string of other companies who have acted similarly, to name evoke (previously 888 Holdings), PointsBet, and MaximBet, all of which have decided in favor of discontinuing their local operations.

Betway bids adieu to the US sports betting market

As the company behind betting and gaming business Betway, and the Spin multi-brand online casino, Super Group’s exit from the market will be felt.

The move comes after the company took a careful look at its existing operations as part of an extensive internal review, deciding that the sportsbook product would be withdrawn from the market.

Presently available in nine states, the Betway Sportsbook will be winding down operations in the immediate future, the company informed in the official press release.

The company has decided against winding down its online casino operations, however, with Super Group confirming that it intends to maintain its Spin casino presence – which includes Jackpot City – in both Pennsylvania and New Jersey.

Casinos have been historically kinder to large gambling groups in the United States, offering a much better revenue share and generally accompanied by milder competition, despite market saturation.

Commenting on the group’s decision, Chief Executive Officer Neal Menashe said that there was nothing particularly surprising in Super Group’s decision.

"As a global business, we constantly evaluate the optimal use of our resources across all markets in which we operate. We have recently concluded an extensive review of our US operations and, at present, we do not see a long-term path to profitability for the sportsbook product," he noted.

Menashe acknowledged that the group has seen the bulk of its revenue come from the iGaming vertical, which has prompted it to reconsider its sportsbook positions in the United States.

He confirmed the group’s intention to offer a competitive iGaming product in the Keystone and Garden State but tersely summed up that the sportsbook product is unlikely to be profitable for the company in the long term in the country.

Not a painless plug, but the right decision to make

Super Group will have to absorb certain costs connected with the closure of its sportsbook operations, which will be updated in the company’s latest earnings call. Most other businesses that sought a quick exit faced similar circumstances.

Evoke (previously 888 Holdings) sold its business to Hard Rock Digital, and PointsBet divested its US B2C assets by selling them to Fanatics Sportsbook. As such exits continue to happen, it’s down to the native sportsbook brands to remain competitive having staved off competition from overseas.

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