Posted on: August 18, 2024, 08:30h.
Last updated on: August 18, 2024, 08:30h.
Amid sluggish profits, Betfred halted its sports wagering offerings in Maryland last month. At the end of this month, the company is pulling the plug on its operations in Colorado and Ohio and it might not be long before the British bookmaker leaves the US market outright.
When Betfred ceases offering mobile sports betting in Colorado and Ohio later this month, that will leave Arizona, Iowa, Pennsylvania, and Virginia as the states in which it offers online sports wagering. The gaming company also runs retail sportsbooks in Louisiana, Nevada and Washington State. In an interview with EGR North America, Betfred USA CEO Kresimir Spajcic said the operator is working to bolster its share in the US, but noted profitability is key.
I truly believe that my team and I can create a sustainable business. The question is: Can you make a business profitable enough to make sense to continue operating in the U.S. versus putting this effort and investment elsewhere that might yield a bigger return?,” said Spajcic in the interview.
The chief executive officer of Betfred’s US business told the publication that he’ll have a better sense of the operator’s path forward in the US by the end of this year and that an outright departure from this market would be considered “if we don’t have enough value that we can create within the US.”
Betfred Could Be Latest US Sports Betting Casualty
It’s been just over six years since the Supreme Court ruling on the Professional and Amateur Sports Protection Act (PASPA) and nearly as quickly as the domestic sports wagering industry expanded, it’s fallen in population.
Whether by way of acquisition or the owners simply deciding to throw in the towel, the list of US sports betting “deaths” includes Fubo Sportsbook, FOX Bet, MaximBET, PointsBet US, Tipico, and WynnBET, among others. More recently, Super Group (NYSE: SGHC), the parent company of Betway, said it’s leaving the US sports betting market while SuperBook owner Westgate said it will no longer offer mobile betting in any state outside of Nevada.
The point is nearly every other operator that is not DraftKings and FanDuel has found it difficult to compete against the duopoly and those challenges are amplified for foreign companies such as Betfred that aren’t familiar to US bettors.
What’s Next for Betfred in US
For now, it appears as though Betfred wants to make a go of it in the states in which it continue offering mobile sports betting, but Spajcic told EGR it’s possible the operator decides to exit more states before the end of this year.
However, he also added that Betfred is working on some agreements and projects that could bolster the company’s position in the US. Likewise, Betfred is also looking into reworking some old accords that benefit the gaming firm.
Profitability in the US appears to be the point of emphasis for Betfred today and if that’s not attainable, the operator could abandon the market over the near- to medium-term.