Betway will begin its ‘planned exit’ from US sportsbook markets, as announced by NYSE-listed parent company Super Group.
The decision follows an ‘extensive internal review’ undertaken by Super Group which determined the closure of Betway’s US offering in the states of Arizona, Colorado, Indiana, Iowa, New Jersey, Ohio, Pennsylvania, and Virginia.
H1 trading saw Super Group declare that it had placed its US market activities under strategic review, in light of NYSE group recording FY2023 losses of €11m – reflecting a 105% decline on FY2022 profits of €184m.
Ushering in the strategic review, Group CEO Neal Menashe stated that “We are not happy with the status quo” – as Super Group’s financial results were hampered by impairment charges of €36m attached to the North American subsidiary of Digital Gaming Corporation Limited (DGC).
As announced: “The company, along with relevant regulators and partners, will shortly begin the process to fully close its US sportsbook operations in the nine states in which it is currently live.”
Betway launched its US profile in 2022, via an exclusive partnership with DGC, which provided Betway with a gateway to launch its sportsbook in 12 US wagering states.
The launch of Betway in the US saw the sportsbook partner with eight NBA teams, including the Chicago Bulls, Cleveland Cavaliers, Golden State Warriors, Minnesota Timberwolves, Miami Heat, and Milwaukee Bucks.
The growth and expansion of Betway in North America was noted as a key objective of Super Group, which listed on the NYSE in January 2022, via a SPAC deal led by Sports Entertainment Acquisition Corporation (SEAC).
Super Group will maintain an ‘igaming presence’ in the US, where it plans to operate its online casino brands Spin and Jackpot City in the regulated states of New Jersey and Pennsylvania.
Costs and charges incurred with the closure of Betway’s US operations will be disclosed by management in the “next quarterly earnings call, scheduled for early August.”
Closing the statement, Neal Menashe commented: “As a global business, we constantly evaluate the optimal use of our resources across all markets in which we operate. We have recently concluded an extensive review of our US operations and, at present, we do not see a long-term path to profitability for the sportsbook product.
“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 products in New Jersey and Pennsylvania. We are open to expanding our US footprint if the right investment or strategic opportunities arise.”
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