The MaximBet Sportsbook has become the latest victim of the highly competitive sports betting industry. The company announced it would be shutting down its sportsbook platform across the US, effective immediately.
The sportsbook’s closing comes less than two months after its launch in Indiana and a little over a year after its launch in Colorado. Those were the only two markets the sportsbook operated in during its life span.
MaximBet calls it quits
In a letter to customers, the company cited financial problems as the root of its folding.
“It is with sincere anguish that we have informed our incredibly loyal customers that the current macroeconomic conditions have caused MaximBet to cease operations,” a statement from MaximBet said. “MaximBet launched in 2021 with a desire to bring sports, entertainment, and betting together, all inside a lifestyle brand with a complete focus on the end user. While making great strides in offering customers a completely unique player experience, our ability as an early-stage company to compete in a market where operating costs far exceed revenue, even among the top operators, is not sustainable.
“Our priority now, in consultation with state regulators, is to wind down operations and help active customers in Colorado and Indiana withdraw their funds and close their accounts.”
In October, the sportsbook’s single month of operation in Indiana, MaximBet collected about $400,000 worth of bets translating to just shy of $44,000 in gaming revenue.
Tough market to crack
The Indiana sports betting market is one of the most competitive and saturated markets in the industry. Before MaximBet folded, the Hoosier State had 14 sports betting apps for customers.
The state’s top three sportsbooks accounted for over 73% of the total handle in October. As a result, the other 11 online sportsbooks were left fighting for scraps.
MaximBet joins a small list of sports betting operators that have closed their doors. The Churchill Downs-powered app TwinSpires recently ceased operations earlier this year. Fubo Sportsbook also shuttered before its launch in Indiana.
Despite its immediate closure, customers with a MaximBet account have till Dec. 15 to withdraw any funds in their online wallet. After that deadline passes, the company will send a check with the customer’s remaining balance to the address on file.