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Business By The Books: Will Betway Be Next Sports Betting Company To Leave US?

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Six words from Super Group‘s year-end earnings presentation say everything about the environment that smaller sports betting operators are facing in the US.

“Currently assessing a range of options” is the top item under the US guidance section. That makes Betway the latest sports betting brand that could exit as its parent company thinks twice about its future investment in the country.

Everything is on the table for the US market including reconsidering current states, potentially focusing on iGaming states, or a sale of assets, President and COO Richard Hasson said on Wednesday’s earnings call.

Super Group outlines US sports betting losses

Super Group’s US operations saw an adjusted EBITDA loss of €17.8 million in the fourth quarter. That dragged the segment, which operates nine US states, to a loss of €57.4 million for the full year.

One of those states is Ohio, where Betway launched last January along with the rest of the market. The results are bleak: of the nearly $7.6 billion bet in 2023, Betway contributed just $9.3 million in handle.

Adjusted EBITDA losses for 2024 are “not expected to exceed 2023,” according to guidance.

Sports betting exits piling up

Betway would be the latest in a growing list of US used-to-be companies.

888 just announced it is dropping the Sports Illustrated brand on Wednesday as part of its US review. Betr, Unibet and WynnBet are others who recently announced they are either entirely pulling out of the US or modifying US operations.

The exits have created opportunities for some of the remaining sportsbooks.

Fanatics got a jump-start to its launch with the $225 million purchase of PointsBet‘s US operations. ESPN Bet, which partnered with Penn after the Barstool brand did not meet expectations, purchased Wynn’s New York betting license for $25 million.

Ohio 2FA requirement language proposed

The Ohio Casino Control Commission submitted a proposed rule change to the Common Sense Initiative office that requires all sports betting accounts to use two-factor authentication.

Comments on the rule will be accepted through March 21.

MGM, PENN at JPM Forum

Management from MGM and PENN Entertainment will speak at the J.P. Morgan Gaming, Lodging, Restaurant and Leisure Management Access Forum on Thursday:

  • Penn CEO Jay Snowden will speak at 1:50 pm ET.
  • MGM CEO Bill Hornbuckle and CFO Jonathan Halkyard will speak at 5:40 pm ET.

Streams can be found on the company’s investor relations pages.

Betr raises $15M for new markets

Betr recently raised $15 million at a $375 million valuation, with three existing investors increasing their stakes.

The round was co-led by Harmony Partners and 10x Capital. Fuel Venture Capital, Aliya Capital Partners and Roger Ehrenberg/Eberg Capital were the investors to take more ownership.

Betr had a “highly successful 2023” which saw the company hit “a significant level of scale – both with respect to paying users and revenue – while doing so efficiently.” The sports betting and fantasy operator has plans to enter new markets, including Pennsylvania with the debut of its iGaming product.

The announcement of the cash raise comes less than a month after Betr shuttered its Massachusetts sportsbook operation.

Sports betting operators bolster PG resources

Multiple operators are using NCPG‘s Problem Gambling Awareness Month to deploy new problem gambling campaigns, resources and tools.

BetMGM released a 30-second spot with the NHL‘s Connor McDavid that focuses on responsible gambling tools. The ad will be allowed in Ontario despite the ban on athletes and celebrities since the primary focus of the ad concerns responsible gambling.

FanDuel is launching a pilot program in New Jersey and Ohio with Kindbridge Behavioral Health that will give self-excluded players in those states direct access to group services and mental health assessments. It also made $150,000 donations to the National Council on Problem Gambling and the International Center for Responsible Gambling.

Sporttrade will offer customers a catalog of customized responsible gaming resources and services from Birches Health. The provider focuses on the prevention and treatment of problem gambling.

Caesars, NHL extend partnership

Caesars can now use NHL IP to build and promote online casino games.

The company also remains a sports betting and gaming partner of the league.

Caesars launched Caesars Football Blackjack in February, which includes NFL branding. It is the exclusive online casino partner for the NFL.

SBC expanding Summit Rio

SBC will host 400 exhibitors and sponsors for as many as 10,000 gaming professionals at the SBC Summit Rio in 2025.

The show will move to the Riocentro convention center to accommodate the expansion.

The post Business By The Books: Will Betway Be Next Sports Betting Company To Leave US? appeared first on Legal Sports Report.

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