Share
After a thorough internal review, Betway’s parent company, Super Group, has announced it is exiting the US sports betting market. This decision, however, doesn’t affect its online casino operations, as it will continue to offer casino games through two of its Spin portfolio brands in Pennsylvania and New Jersey.
Betway players in these states will have continued entertainment with familiar names like Jackpot City. Jackpot City entered the Pennsylvania market in December 2023, with a successful launch in New Jersey just a few months later, in March 2024.
In a news release, Super Group Chief Executive Officer Neal Menashe said the company’s iGaming venture has proven more profitable:
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 US footprint if the right investment or strategic opportunities arise.”
Key takeaways
- Betway exits the US sports betting market following an internal review.
- A lack of profitability in sports betting compared to their more successful iGaming operations drives the decision.
- Despite withdrawing from sports betting, Super Group will continue to operate its PA online casinos and NJ online casinos.
- The exit from sports betting will incur expenses, but Super Group reassures stakeholders that these costs will not disrupt their overall financial plans or business operations.
Betway’s US sports betting shut down timeline remains uncertain
While the exact shutdown date for Betway’s US operations hasn’t been announced, we do know it’s currently operating sportsbooks in nine states:
- Iowa
- New Jersey
- Arizona
- Colorado
- Indiana
- Virginia
- Ohio
- Louisiana
- Pennsylvania
Super Group was actively pursuing the Illinois online sports betting market. It applied for a license on two separate occasions. However, it ultimately decided to withdraw the applications at some point.
Exit plan driven by revenue decline in competitive sports betting markets
Betway’s decision to leave US sports betting stems from an internal review that revealed a struggle to gain traction in the competitive sports betting landscape. While the company enjoyed some success in Pennsylvania and New Jersey, this was likely due to the combined strength of their online casino offerings rather than the sportsbook itself.
Betway’s sports betting revenue dipped to $84.5 million in Q1 2024, showing a 5.7% decline from the $89.9 million they brought in during the same quarter last year.
On a brighter note, their online casino sector saw a significant upswing, generating $148.8 million in revenue. This represents a 31.4% increase compared to the $113.3 million they earned in the previous year’s Q1.
Online casino revenue now makes up a larger portion of Betway’s total income, accounting for approximately 63.8% in Q1. Menashe continued: “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.
Super Group will incur expenses related to shutting down its sports betting operations in various locations. These costs, although substantial, won’t affect its previously announced financial plans or business operations.
More details about the exit costs will be provided during its next quarterly earnings call in August.
