Betway's Super Group Brand Withdrawls from US Market

Super Group, the parent company of Betway, has decided to withdraw its US sports betting operations after a comprehensive internal review. The company announced that it will close its sportsbook operations in the nine states where it is currently active. CEO Neal Menashe stated that the company does not see a sustainable path to profitability in these markets.

Betway is currently operational in Pennsylvania, Iowa, New Jersey, Arizona, Colorado, Indiana, Virginia, Ohio, and Louisiana. However, Super Group will maintain its online gambling services in New Jersey and Pennsylvania, focusing on its Spin portfolio brands, including Jackpot City.

Menashe highlighted that the majority of Super Group's revenue comes from igaming, and the company will continue to offer its leading casino products in New Jersey and Pennsylvania. He also mentioned that they are open to expanding their US presence if suitable investment or strategic opportunities arise.

The costs associated with closing these operations are expected to be reflected in the company's Q2 results. However, these costs are not anticipated to affect the group’s capital allocation plans.

Super Group acquired Digital Gaming Corporation (DGC) in January of last year, which held the US rights to the Betway brand. At the time of acquisition, Betway was already live in eight states, with Louisiana launching in Q1 2023.

The acquisition deal, agreed upon in January 2022, aimed to provide Super Group with an entry into the US market.

In the Q1 earnings analyst call, Menashe hinted at the potential exit from the US market, expressing dissatisfaction with the current situation. He stated that all options were being considered, ranging from maintaining the status quo to a complete exit.

The US betting market has become increasingly competitive, with dominant brands like FanDuel, DraftKings, and BetMGM holding significant market shares, making it challenging for other operators to compete.