The parent company of sports betting and gaming businesses, Super Group, will be exiting the United States sportsbook market due to a lack of a path for profitability.
The company owns Betway, a leading online sports betting and gaming business, as well as the multi-brand online casino Spin.
On Wednesday (July 10) the company announced its departure via a press release.
They say the decision came after the “completion of an extensive internal review,” as they now plan to undertake an exit plan.
As such, the company, along with relevant regulators and partners, will soon begin the process of fully closing its U.S. sportsbook operations in the nine states in which it operates.
Chief Executive Officer Neal Menashe commented: “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 U.S. 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 U.S. footprint if the right investment or strategic opportunities arise,” says the CEO.
The company will continue its iGaming presence and has plans to operate two iGaming brands from its Spin portfolio in both New Jersey and Pennsylvania.
Super Group does expect to incur costs and charges in connection with the closer of its U.S. sportsbook operation. They say they’ll know more information about this during the next quarterly earnings call which is scheduled for early August.
But, they do say the costs and charges will “not have any impact on Super Group’s previously communicated capital allocation or operating plans.” The non-U.S. earnings are reported separately and will not be negatively impacted by the closure.
Featured Image: Via Ideogram
The post Super Group announce plans to exit US sportsbook market appeared first on ReadWrite.
