Last updated: August 14, 2024
Super Group, the parent company of Betway, will exit US sports betting due to profitability challenges, focusing instead on thriving online casino operations in Pennsylvania and New Jersey. Despite revenue declines in sports betting, their iGaming sector, highlighted by brands like Jackpot City, remains robust and continues to expand in key US markets.
In their internal assessment, Super Group, the company that owns Betway, has found it appropriate to exit the US sports betting market. Its online casino offerings, which will remain functional in Pennsylvania and New Jersey under two Spin portfolio brands, are immune to this premeditated decision.
Some of the top casinos, such as Jackpot City, began operations in Pennsylvania only in December 2023 and New Jersey in March 2024, but players in these states can still play.
In a recent interview, Super Group CEO Neal Menashe pointed out that their iGaming segment is very lucrative, saying that online casinos generate most of the firm’s revenues. They plan to remain invested in these core markets and expand them in the future should a good investment opportunity arise.
Thus, while bet intensification successfully applied to online casinos, which yielded further profits and expansion, one of the highlighted weaknesses led to the company’s withdrawal from the US sports betting market. Super Group ensures all stakeholders that their decision to cease sports betting will not affect their wallets or business continuity.
To this day, Betway does not agree on the official date of its withdrawal from the United States markets, so plans for its exit from sports betting are still vague. Presently, the Betway online sportsbook is in nine states: Iowa, New Jersey, Arizona, Colorado, Indiana, Virginia, Ohio, Louisiana, and Pennsylvania.
Earlier, when engaging in the Illinois online sports betting market, Super Group, a parent company of Betway, applied for licenses twice. However, at a later stage, the company made a strategic decision to pull out its applications.
The decision to conduct its operations outside US sporting activities was reached after it analyzed the firm and realized that it could not effectively provide competitive services in the market. While the firm did experience some levels of growth in Pennsylvania and New Jersey, it was more due to its multiple offerings of online casinos than sports betting alone.
Betway’s sports betting income dropped to $84.5 million in the first quarter of 2024, a 5.7% decrease from the $89.9 million recorded in the same period the year before. On the other hand, their online casino industry experienced significant expansion, bringing in $148.8 million—a significant rise of 31.4% over the previous year’s first quarter.
CEO Neal Menashe emphasized the company’s strategic focus, pointing out that, as of Q1, online casino revenue accounted for roughly 63.8% of Betway’s total revenue.
He highlighted the continuous assessments of international market strategies, such as the recent thorough examination of US operations, concluding that the sportsbook product lacked a sustainable path to long-term profitability.
The parent company of Betway, Super Group, expects substantial costs related to closing down sports betting operations in multiple locations. However, these expenses are anticipated to be covered without affecting the company’s financial plans or general operations.
