Betfred to shutter online operations in Arizona as state exits ramp up
After recent withdrawals from Maryland, Colorado, and Ohio, Betfred has announced it will cease operations in Arizona by November 4 as struggle for market share in the US continues
Betfred has confirmed it is shuttering its online operations in Arizona, becoming the latest bookmaker to exit the Grand Canyon State.
The Warrington-based bookmaker announced that as of September 19, 2024, no further accounts could registered, nor will Betfred accept any more online deposits or wagers.
Users in Arizona who already have an account with Betfred have until November 4 before the company ceases all online operations entirely.
Any bets that are due to be settled after that November 4 deadline “will be settled based on a fair market value as an early cash out on September 20, 2024,” as per Betfred’s exit announcement.
Funds that remain in a player’s account after November 4 will be issued via check to the address registered with the account within 30 days of the deadline.
All Betfred bonuses and ongoing promotions are permitted to be used until the offer expires or the date the company ceases operations, whichever comes first.
Betfred also outlined that the company is working closely with state regulators to ensure its winding down process is completed in line with Arizona regulations and guidelines.
Betfred had gone live in Arizona in March 2022 via a market-access agreement with the Fort McDowell Yavapai Nation.
According to the Arizona Department of Gaming’s June report, Betfred reported handle of $2m and revenue of just $114,556.
In terms of handle, that put the brand ahead of Bally’s, SaharaBets, Superbook and Betway but streets behind market leaders DraftKings and FanDuel.
Even in comparison to tier-two firms, in the shape of ESPN Bet ($12.7m) and bet365 ($19m), Betfred had struggled to achieve significant cut through.
In July, both SaharaBets and SuperBook called time on their respective stints in the state, while this year Betway confirmed it would cease sports betting operations in favor of an igaming-only approach.
WynnBET, TwinSpires, and Unibet have all also shuttered operations in a market that has proved difficult to establish a significant presence in.
Betfred’s stateside troubles stretch further than Arizona, as last month the firm’s US CEO Kresimir Spajic spoke exclusively to EGR and conceded that the option to depart the American market entirely is “on the table” amid recent departures from Maryland, Colorado, and Ohio.
The recent announcement regarding Arizona means that Betfred’s online offering is now available in only three states: Iowa, Pennsylvania, and Virginia, alongside retail sportsbooks in Washington and Nevada.
Another update on the operator’s site indicates that its retail operations in Louisiana have also been pulled.
Reflecting on whether further state exits could be on the cards, Kresimir explained: “I would say yes [it’s possible we could see more exits before the end of the year]. By the end of the year, we are going to know where all these deals that we are trying to negotiate are going.
“Are we able to find these new competitive advantages? Then we’re going to draw the line and make a decision on what we really want to do.”
Pressed for comment on whether that would mean a full-scale departure from the US, Spajic added: “It’s on the table as well. If we don’t have enough value that we can create within the US.”