Betway Sportsbook Exits US Betting Market

Betway Sportsbook is leaving the US market, leaving nine states with one less option for sports bettors.

The United States is set to lose the services of Betway Sportsbook after its parent company, Super Group (SGHC) Limited (NYSE: SGHC), decided to pull its product from the market.

It was announced Wednesday that Super Group is choosing to cut ties in the US over concerns that their products (Betway and SaharaBets) will not be able to profit in the United States’ flooded online sportsbook market.   

Reason for the decision

According to Eilers & Krejcik Gaming, FanDuel and DraftKings have three-quarters of the current industry’s market share in the US. The CEO of Super Group, Neal Menashe, explained the final decision by saying:

“We have recently concluded an extensive review of our US operations and, at present, we don’t see a long-term path to profitability for the sportsbook product.”

The 2023 first quarter earnings report saw a 13% year-over-year revenue drop as well as a $21.7 million loss in the US and Canada combined. Reports such as this led to an internal review from Super Group, and thus, the decision to exit.

How Betway’s exit affects the US market

Betway was by no means a poor online sportsbook. In fact, the brand holds one of the most prominent sports betting presences outside the US, and Menashe commented on how the US exit will affect Super Group’s international earnings:

“Non-US earnings, which have historically been reported separately, will not be negatively impacted by this closure.” 

Nine states across the US had gained the services of Betway Sportsbook since the brand entered the country. Betway will be ceasing operations in the following states: 

• Arizona
• Colorado
• Illinois
• Indiana
• Louisiana
• New Jersey
• Ohio
• Pennsylvania
• Virginia 

Betway has partnered with notable NBA teams such as the Brooklyn Nets, Chicago Bulls, Cleveland Cavaliers, Los Angeles Clippers and Golden State Warriors. It remains to be seen what will happen to those partnerships.

Of note, the Spin, which is an online casino owned by Super Group, is currently operating in both New Jersey and Pennsylvania. Super Group plans to keep its iGaming presence within the US by keeping the Spin active.

Betway joins the likes of Unibet, FoxBet and PointsBet, amongst others as sports betting sites to exit the US market in recent years.

How the deal affects Super Group

Interestingly, the decision to pull Betway from the US sports betting market comes just months after Super Group paid $150.5 million to attain full control of its Apricot-licensed sportsbook software technology. 

While ending its business in the United States doesn’t have an impact on that aforementioned deal, Super Group likely didn’t foresee the exit so shortly after the acquisition.  

Despite its plans to leave the US, Betway Sportsbook still holds footing in the Americas, Africa and Europe. Not only that, but the brand currently owns over 60 different partnerships with leagues and teams across the globe.

The next quarterly earnings call in August will reveal the extent of costs and charges in connection to the closure of Betway’s US sportsbook operation, according to Super Group.