Super Group, the parent company of online sports betting and gaming businesses, has announced its exit from the US sportsbook market due to a lack of a clear path to profitability.
The company, which owns Betway and the online casino brand Spin, made the decision after completing an extensive internal review.
In a press release on Wednesday, Super Group revealed that it will begin the process of shutting down its US sportsbook operations in the nine states where it currently operates.
The company’s CEO, Neal Menashe, stated that despite evaluating the optimal use of resources across all markets, they do not see a long-term path to profitability for their sportsbook product in the US.
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However, Super Group will continue to operate its iGaming presence in New Jersey and Pennsylvania, where it generates the majority of its revenue. The company plans to maintain its two iGaming brands from its Spin portfolio in both states.
The closure of the US sportsbook operation is expected to result in costs and charges, which will be detailed during the company’s next quarterly earnings call in early August.
Despite this, Super Group assured that the costs will not impact its previously communicated capital allocation or operating plans. The company’s non-US earnings are reported separately and will not be affected by the closure. Super Group US Exit
Super Group is open to expanding its US footprint if suitable investment or strategic opportunities arise in the future.
