Super Group to exit US online sports betting market
Betway and Spin parent company to focus solely on online casino opportunities and will remain live in New Jersey and Pennsylvania
Super Group is set to pull its sports betting product from the US after an “extensive internal review” by the New York-listed firm.
Super Group, the parent company of Betway and multi-brand casino Spin, will shortly begin the process to shutter its US sportsbook operations across nine states.
Super Group is currently live in Arizona, Colorado, Louisiana, Iowa, Indiana, New Jersey, Ohio, Pennsylvania, and Virginia.
The business said it expects to incur costs and charges in connection with the exits, through which it is mediating with relevant regulators and partners.
Super Group said more information on the costs would be made available at the next quarterly earnings call.
Bosses said: “Such costs and charges, while not insignificant, will not have any impact on Super Group’s previously communicated capital allocation or operating plans.
“Non-US earnings, which have historically been reported separately, will not be negatively impacted by this closure.”
The exit from the US online sports betting market comes as FanDuel and DraftKings have sewn up a combined 75% market share, according to Eilers & Krejcik Gaming, with PENN Entertainment, BetMGM, Caesars Digital, and Rush Street Interactive all sitting in the tier below the duopoly.
However, the operator will maintain its igaming presence in New Jersey and Pennsylvania. The firm will use two brands from its online casino portfolio under the Spin brand, including Jackpot City.
In Q1 2024, online casino accounted for 79% of Super Group’s total revenue of €374m ($404m).
During the first three months of the year, Super Group reported a €22.3m loss from the US, impacting the group’s adjusted EBITDA down to €46.5m.
Revenue in North America for Q1 was mainly driven by gains in Canada and stood at €140.9m.
Speaking to EGR following the release of the company’s Q1 results, COO Richard Hasson said an igaming-only approach would be a strong business proposition for the group.
He said: “I think what’s different between sports and casino is that you can build a business in one or two states with igaming.
“That is different to what big brands spend nationally on the sports betting side. That is one of the options.”
The move to pull out of the US sports betting market comes after Super Group agreed a €140m deal to acquire its sports betting software tech from long-term partner Apricot.
Speaking on the exit, Super Group CEO Neal Menashe said: “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 product in New Jersey and Pennsylvania.
“We are open to expanding our US footprint if the right investment or strategic opportunities arise,” he added.
Super Group’s transition to online casino-only in the US sees the operator follow in the footsteps of Kindred Group, with the Stockholm-listed firm ultimately exiting the US altogether following a strategic review.