Internal review led to determination betting company does not ‘see a long-term path to profitability’ for Betway sportsbook in the U.S.
Photo By – USA TODAY Sports
Super Group is getting out of the U.S. sports betting market, citing profitability concerns.
The global sports betting and gaming company announced on Wednesday that an “extensive internal review” led to the decision to cease Betway USA Sportsbook operations.
“As a global business, we constantly evaluate the optimal use of our resources across all markets in which we operate,” Super Group CEO Neal Menashe said 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.”
Super Group has begun working with partners and regulators to end Betway USA’s presence in New Jersey, Arizona, Colorado, Indiana, Iowa, Louisiana, Ohio, and Virginia.
Rough go of it
Betway has been on shaky ground in the U.S. market.
Super Group announced during its first-quarter earnings release in May that its North American segment lost $21.7 million and revenue dropped 13% year-over-year.
That led to the internal review and the decision not to renew its license in Massachusetts, where it never launched.
Super Group said while it expects to incur costs and charges in the second quarter associated with the market closures, non-U.S. earnings won’t be affected. Management will provide an update during its next quarterly earnings call in August.
Staying in iGaming business
Menashe said Super Group will continue lucrative iGaming operations in New Jersey and Pennsylvania and is looking to expand its online casino Spin portfolio “if the right investment or strategic opportunities arise.”
Pennsylvania recently saw a 23.5% month-over-month increase in iGaming during May. Betway’s online gaming partner Live! Casino Philadelphia hauled in $3.6 million in monthly revenue.
“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,” Menashe said.