Betway Becomes Latest US Sportsbook Casualty, But Plowing Ahead With Online Casino Offerings
Super Group's decision to pull Betway's sportsbook out of the U.S. reflects how mid-tier operators are finding profitability elusive.
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In the latest sign of the times in legal gambling, parent company Super Group announced Wednesday that it is pulling the Betway sportsbook brand out of the U.S. and instead focusing stateside efforts on its online casino product in New Jersey and Pennsylvania.
Six years on from the start of America’s sports betting expansion, mid-tier operators are finding profitability elusive in the mobile sportsbook space.
“As a global business, we constantly evaluate the optimal use of our resources across all markets in which we operate,” said Super Group CEO Neal Menashe in a statement. “We have recently concluded an extensive review of our U.S. operations and, at present, we do not see a long-term path to profitability for the sportsbook product.”
That gloomy assessment does not apply, however, to the company’s Jackpot City and Betway Casino products.
Menashe contined: “The vast majority of Super Group’s revenue is generated in iGaming and, in line with that strategy, we will continue to offer our leading casino product in New Jersey and Pennsylvania. We are open to expanding our U.S. footprint if the right investment or strategic opportunities arise.”
Three weeks left to bet
Betway customers received an email Wednesday informing them “that Betway will be ceasing sports betting operations across all U.S. states to focus on enhancing and expanding its world-class casino experience.” The email detailed that no sports bets will be taken after July 31 and that, effective immediately, no bets will be taken on markets settled after July 31.
Betway’s sportsbook is, for the rest of this month, available in nine states: Arizona, Colorado, Indiana, Iowa, Louisiana, New Jersey, Ohio, Pennsylvania, and Virginia.
In the two states among those nine that offer iCasino, bettors were informed that their accounts will remain active on the casino side.
“Over the past few years,” the email sent in New Jersey and Pennsylvania read, “our passionate and loyal sports betting customer base has been our cornerstone. We sincerely thank you for your engagement and support.
“We remain dedicated to delivering an extraordinary casino experience, and we look forward to serving you in the future with Betway Casino.”
Sports betting, casino headed in different directions
For the first quarter of 2024, Super Group reported a $24 million loss in the U.S.
Its Betway brand joins other notables that have entered and exited the U.S. sportsbook wars, including PointsBet, FOX Bet, Barstool Sportsbook, William Hill, Unibet, theScore Bet, TwinSpires, PlayUp, Fubo, and MaximBet.
But the iCasino outlook remains positive, despite the vertical being legal in relatively few U.S. markets. Globally, Super Group — which is headquartered on the island of Guernsey in the English Channel — reported $404 million in revenue in Q1 2024 and attributed 79% of that to iGaming.
Super Group shared that it expects to incur costs related to the sportsbook closures and will go into detail on the company’s next quarterly earnings call, in early August. Those costs, the company said, “while not insignificant, will not have any impact on Super Group’s previously communicated capital allocation or operating plans.”
