MaximBet closes its doors to US bettors as costs “not sustainable”
Carousel-owned sportsbook brand announces operating costs exceed revenue as Colorado and Indiana bettors forced to close their accounts
US sportsbook brand MaximBet has shuttered its operations in Colorado and Indiana amid worsening macroeconomic conditions in the US sports betting market.
The Carousel-owned sportsbook, which counts US rapper Nicki Minaj among its brand ambassadors, sent a message to customers yesterday confirming its immediate closure, with all outstanding bets and accounts to be closed by December 15.
In the message, the operator said: “Challenging macroeconomic conditions and an increasingly cost-prohibitive marketplace have accelerated this difficult decision”.
Remaining player balances after this date will be refunded back to nominated bank accounts.
In a further statement following the initial message, Carousel Group acknowledged the need to close the brand following the rigors of the US sportsbook market.
“Our ability as an early-stage company to compete in a market where operating costs far exceed revenue, even among the top operators, is not sustainable,” Carousel said.
“Our priority now, in consultation with state regulators, is to wind down operations and help active customers in Colorado and Indiana withdraw their funds and close their accounts,” the firm added.
Carousel Group first collaborated with lifestyle brand Maxim to launch the MaximBet brand in April 2021, following the closure of a $50m Series A investment round.
MaximBet had planned to launch in Arizona, Colorado, Iowa, Indiana, and New Jersey, but was only able to successfully take bets in Colorado and Indiana following licensure in the states.
In respect of Arizona, MaximBet partnered with the White Mountain Apache Tribe for its license application in the Grand Canyon State.
MaximBet gained access to the Ohio and Pennsylvania markets in September 2021, as part of a market-access deal agreed with Caesars Entertainment, following this up with the launch of a free-to-play app in December.
In addition to Minaj, the sportsbook recruited four-time Major League Baseball (MLB) star and Colorado Rockies outfielder Charlie Blackmon as an ambassador, with Blackmon becoming the first active MLB player to sign a sportsbook deal following the MLB’s relaxation of player commercial-partnership rules.
The brand has existing technology partnerships with White Hat Gaming and Kambi, agreements entered into on an exclusive multi-year basis in January 2022.
MaximBet becomes the second US sportsbook brand to close its doors in the space of two months. Fubo Sportsbook closed in October following a period of strategic review by parent company FuboTV.