Betway Parent Super Group Latest US Sportsbook Operator to Wave Good-Bye

Posted on: July 10, 2024, 11:18h. 

Last updated on: July 10, 2024, 11:24h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Another one bites the dust. Super Group (NYSE: SGHC), the parent company of Betway, announced Wednesday that it’s departing the US sports wagering market, becoming the latest casualty in an increasingly top-heavy space.

Super Group
The Betway brand advertised on West Ham Football Club’s jersey. Parent company Super Group is going public in the US this week. (Image: Getty Images)

The company said the decision to depart the US was made following “an extensive internal review.” Super Group said it will work with regulators to wind down sports betting operations in nine states, but that it will maintain its internet casino offerings in New Jersey and Pennsylvania. Super Group added it expects to incur charges related to the move, and will discuss that matter on its second-quarter earnings conference call in August.

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,” said CEO Neal Menashe in a statement. “We are open to expanding our U.S. footprint if the right investment or strategic opportunities arise.”

Super Group told investors in January it would spend less money on US sports wagering activities this year than it had in years past. In the press release, Menashe added the operator didn’t see “a long-term path to profitability for the sportsbook product” in the US.

Super Group Latest US Sports Betting Victim

Since the 2018 Supreme Court ruling on the Professional and Amateur Sports Protection Act (PASPA), the US sports betting industry has been home to no shortage of contenders, many of which ultimately proved to be contenders.

The space has increasingly consolidated around the DraftKings/FanDuel duopoly. With those two operators controlling approximately 70% of the market, competitors are left fighting for scraps and some, including Super Group, have decided to outright leave the US.

Even when excluding PointsBet and William Hill, which were acquired, the US sports wagering graveyard is now comprised of at least nine operators, including Super Group.

Another recent addition to that list is SaharaBets Sportsbook, which said Tuesday it will be ceasing its internet sports betting operations in Arizona. That operator owns the Sahara Casino Hotel on the Las Vegas Strip and is leaving Arizona because the sale of the NHL’s Arizona Coyotes by Sahara owner Alex Meruelo is now in doubt. If the team is sold, the sports betting license would need to be reapplied for by the new owners and if the Coyotes move, the need for the permit is moot.

Interesting Timing for Super Group Announcement

Super Group’s announcement that it’s halting its US sports wagering operations arrived about two weeks after the gaming company declared its first dividend.

On June 27, the operator unveiled an annual payout of 10 cents a share — a surprising move for a young, small-cap growth company.

“Declaring a dividend shows our confidence in the company and our ongoing strength. We are especially pleased to be able to return capital to our shareholders, while looking to maintain our opportunities for growth,” said Menashe in a statement detailing the dividend.