Super Group is closing down its US sportsbook operations due to there being no clear long-term path to profitability.
The operator group was “actively evaluating all of our options” stateside in March, said chief financial officer Alinda van Wyk in the company’s Q4 and 2023 results release, as part of its strategic review.
However, following a similar path to Kindred and evoke in recent months, Super Group has now pulled the plug on its US sportsbook operations.
The Betway brand will no longer be available in Louisiana, New Jersey, Virginia, Iowa, Colorado, Arizona, Indiana, Ohio and Pennsylvania.
Nevertheless, noting that the “vast majority” of Super Group’s revenue is generated in igaming, CEO Neal Menashe confirmed that the company will retain its US online casino presence in two states.
Two igaming brands from its Spin portfolio will operate in New Jersey and Pennsylvania.
“We are open to expanding our US footprint if the right investment or strategic opportunities arise,” Menashe said.
Super Group admitted it “expects to incur costs and charges” linked to its US sportsbook closure, details of which will be contained in its next quarterly earnings call in early August.
“Such costs and charges, while not insignificant, will not have any impact on Super Group’s previously communicated capital allocation or operating plans,” the operator group said.
“Non-US earnings, which have historically been reported separately, will not be negatively impacted by this closure.”
Super Group is the latest operator to either pull back from, withdraw or consider exiting the US market due to concerns over profitability.
In March, evoke, formerly 888, sold B2C assets to Hard Rock Digital with a view to “fully ceasing operations” stateside by the end of 2024.
Evoke followed Kindred in conducting a review of its US operations which led to the group leaving the market by the end of Q2 and cutting over 300 jobs in the process.
DraftKings and FanDuel remain the top operators in the US, with BetMGM and ESPN Bet among the other brands vying for increased market share.
