Betfred calls time on Maryland operations after less than a year
UK-based company will cease operations in Maryland as soon as the end of next month after failing to generate significant market share
Maryland Lottery and Gaming director John Martin has confirmed Betfred will begin to shutter operations in the Old Line State later this month.
Speaking at the Maryland Lottery and Gaming Commission meeting yesterday, June 20, Martin laid out the operator’s plans for the closing of its Maryland operations.
The group’s brick-and-mortar location will close on June 30, before online operations shut down just over a month later on July 31.
Ahead of going live in the Old Line State, Betfred partnered with Long Shot’s of Frederick in a market-access deal in July 2022.
Betfred secured a license in February 2023, with operations fully launched in October of that year.
Less than 12 months later, Betfred has elected to exit the state.
According to the Betfred Sportsbook site, the firm is still live in Arizona, Colorado, Iowa, Louisiana, Nevada, Ohio, Pennsylvania, Virginia, and Washington.
During the meeting, Martin revealed: “You will see that we have become aware that the relationship between Long Shot’s and Betfred will cease. They have reached a mutually agreeable parting of the ways which is common in the industry at this stage.
“This was not the first time this has happened in Maryland. I don’t think it’s going to be the last time. The [Betfred] retail operations will close on June 30. The mobile operations are closed on the 31st [July]. So, they will be proceeding on a new relationship, the folks at Long Shot’s.”
The news comes just three months after Betfred US CEO Kresimir Spajic declared the group wanted to be the “last man standing” among smaller operators in the market.
Spajic was under no illusions about the size of the task that faced the company, which boasts less than 1% of market share in the US, but referenced a number of market exits around that time as an acquisition and the subsequent growth opportunity.
“It’s [about] being resilient and to persevere,” Spajic explained. “The idea is the less competition in the market, hopefully you can pick up some of that market share
“The key for smaller operators is to look at every market. Every state is a specific state. We have to see what the competitive landscape is and try to find certain assets and advantages that allow you to be competitive.”
Instead, three months later Spajic will oversee Betfred’s own market exit from Maryland.
The month of May saw Betfred generate just $496,979 in mobile handle, seeing the operator rank 10th out of the 13 operators in the state.
However, with a hold of just 1.4%, Betfred’s mobile operations for May turned no taxable winnings in Maryland.
In the year-to-date, taxable winnings from the Old Line State for the brand have amounted to just $78,193.
The group’s retail operations at the 6,300 sq ft Long Shot’s reported handle of just $166,925.
While Betfred is to leave Maryland, the state is expected to welcome two new operators in the form of Veterans Services Corporation and Bally’s.
Betr is also in the throes of the application process, with Maryland’s Sports Wagering Application Review Commission (SWARC) expected to meet next week to determine whether the Miami-headquartered group can launch operations in the state.