Betway to Shut Down U.S. Sports Betting Operations

As the U.S. online gambling industry matures, there has been increasing movement among participating online gambling operators. New operators are entering the market while some established operators are looking at other opportunities. It turns out that Betway has decided to exit the U.S. sports betting market.

It's noteworthy that Betway is a full-service online gambling operator that operates under the ownership of its parent company, Super Group. The announcement was made to the press by Chief Executive Officer Neal Menashe. While he made clear the company would move on from taking online sports bets, they remain committed to the iGaming operations they are running in New Jersey and Pennsylvania. His statement to the press read:

"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 product in New Jersey and Pennsylvania." He added, “We are open to expanding our US footprint if the right investment or strategic opportunities arise.”

Reasons for Super Group's Decision

The primary reason that Super Group's management has made this decision is because sports betting has not been profitable for Beyway. That might well have to do with having to compete with top online sports betting operators like BetMGM, Caesars, DraftKings, and Fanduel.

This move is expected to affect sports bettors in these nine (9) states:

• Arizona


• Colorado


• Indiana


• Iowa


• Louisiana


• New Jersey


• Ohio


• Pennsylvania


• Virginia

No date has been established for Betway's exit from the U.S. sports betting market, but customers can expect notifications in the coming weeks.

Super Group Holds the iGaming Line

Clearly, management at Super Group feels very good about the profitability within the U.S. iGaming market. Based on this, they plan to keep things rolling in the aforementioned New Jersey and Pennsylvania through key operators like Jackpot City Casino. They also plan to look for other opportunities to expand their iGaming operations into other states as such opportunities arise.

Profitability is what is keeping Super Group in play in the online casino sector. By the numbers, the company reported $148.8 million in revenue for the first quarter ended 2024. That represents a 31%+ increase over the number reported for the same quarter in 2023. These numbers left Menasche to state:

“As a global business, we constantly evaluate the optimal use of our resources across all markets in which we operate."

To provide transparency to Super Group stockholders and stakeholders, management has made clear that the company will have to absorb significantly high expenses in its effort to shut down its U.S. sports betting operations as quickly as possible. They further added that while the expenses will be significant, it will not affect the plans the company has for the future. More information about the extent of these expenses is expected to be disclosed during its next quarterly earnings call, which is scheduled for August.