This story originally ran in the December 2024 issue of GGB Magazine.

This year was the first since sports betting became a states’ rights issue in 2018 in which no state legislature legalised sports betting. Missouri voters did legalise that state in November. Two states – North Carolina and Vermont – launched live wagering, the lowest number since 2018. The only number that continues to rise is the number of wagering platforms downsizing or joining the sports betting graveyard.

Companies like Betr, Sporttrade and Underdog Sports have grown in this environment. Rather than rushing to get licensed and go live in any available market, these companies have thoughtfully and intentionally selected markets in which they believe they can thrive. The growth has been incremental.

Over time, even successful national companies like Churchill Downs and Wynn Resorts have launched and then closed down. When the Professional and Amateur Sports Protection Act (PASPA) was overturned in 2018, many companies – even those outside of sports betting – embraced the opportunity to give it a go. FuBo TV and Maxim, a “modern” men’s brand that has a flagship magazine, launched a handful of online sportsbooks that folded within two years.

Since 2020, more than 20 companies have shuttered at least some of their US digital sportsbooks. Often the stated reason was to “focus on the core business.”

Five companies left US or downsized in ’24

In 2024, the contraction continued. Five sports betting platforms that had been active in multiple states announced or completed US exits or downgrades. Betway, SI Sportsbook and Unibet opted to get out of the digital wagering business altogether. SuperBook and WynnBet pulled out of multiple states but continue to offer online betting in Nevada.

“You have a very competitive landscape and everyone is in a sprint while trying to survive the marathon,” consultant Brendan Bussmann of BGlobal told GGB Magazine. “I think the challenge is if you are a small operator who is competing in an environment regardless of whether you are where you think you need be, and being outspent by the larger operators.”

For the five operators that shuttered all or most of their US operations in 2024, Bussmann appears to be right. WynnBet pulled out of eight US markets in August 2023, and completed its non-Nevada exit in Massachusetts earlier this year. The company cited the high cost of customer acquisition as a key factor in the decision.

SuperBook contracted, didn’t shut down

For SuperBook, quick expansion was in part predicated on being able to offer its NFL SuperContests in other states. Due to regulatory issues, that concept never came to fruition. In July of this year, after four years of rapid expansion, the company said it was unable to capture market share and would return to focusing on its Las Vegas retail locations and platform. It shut down eight platforms.

Betway, owned by Super Group, also announced in July that it was pulling back on US operations. The company was live in nine US jurisdictions, saying it could not see a path to profitability.

SI Sportsbook is the most recent addition to the sports betting graveyard, and its exit is still in progress. Unibet announced its withdrawal late in 2023, saying it could not compete against the US market leaders. The company completed its exit in 2024.

For consumers, there are fewer and fewer choices. Though not tangible, it’s also possible that innovation will slow down as the number of companies competing for customers shrinks.

“There will always be innovations coming from other groups along the way, but the biggest profitability for the consumer is consistent competition, whether that is three players or a dozen,” Bussmann said. “Competition drives innovation.”

Incremental growth important for small operators

Amid the exodus, Betr, the microbetting wagering site backed by MMA star Jake Paul, is growing incrementally. It is live in two states with plans for more, despite pulling out of Massachusetts early in the year.

Sporttrade, which offers stock-market style trading in some jurisdictions, is now live in five US states. And Underdog Sports, which also has a massive fantasy sports business, was part of North Carolina’s March universal go-live. The company is licenced in Ohio and has market access in several other legal states. But it has also chosen a methodical approach to keep the sports betting graveyard at bay.

“Look at who has survived or at least said, ‘Hey, … here are our core markets and this is where we are going to compete’ vs. saying, ‘Hey, here’s a new market, we’re going to go compete’,” Bussmann said. “If those that have withdrawn, had said, ‘Hey, there are three markets that I think work, I’m going go be in those,’ then they would still be around.”