Super Group to Exit US Sportsbook Market
Super Group, the parent company of Betway and Spin, has announced its decision to cease sportsbook operations across nine states in the US following an extensive internal review. The affected states include Arizona, Colorado, Indiana, Iowa, New Jersey, Louisiana, Ohio, Pennsylvania, and Virginia.
Reasons Behind the Withdrawal
Neal Menashe, CEO of Super Group, explained that the decision was driven by the lack of a “long-term path to profitability” for the sportsbook product in the US market.
Despite the withdrawal, Super Group will continue to operate its iGaming brands, including Jackpot City, under the Spin portfolio in select states, aligning with its global strategy to concentrate on more lucrative iGaming revenue streams.
Financial Implications and Future Plans
While the company expects to incur costs associated with the closure of its US sportsbook operations, these are not anticipated to affect Super Group’s overall capital allocation or operational plans.
Detailed information about these costs will be disclosed in the next quarterly earnings call scheduled for early August. Menashe also highlighted that the closure would not impact non-US earnings, which continue to show strong performance.
Super Group’s exit from the US sportsbook market is part of a broader trend observed within the industry, where other companies like Evoke and Kindred Group have also pulled back from the US market.
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