British sports betting exchange Betfair announced on Friday, September 11 that the company was withdrawing from the New Jersey market. Betfair cited poor results in the market as well as the fact that the state was getting its first sports betting exchange as the reasons behind the decision.
The company will stop servicing the market on October 1, customers learned on Friday, and FanDuel Group COO, Kip Levin, pitched in to explain that Betfair had missed the mark in building what he described as a “critical mass” to make the betting exchange viable.
Betfair made an ambitious entry into the New Jersey market back in 2015 when it received a formal go-ahead by the state’s Division of Gaming Enforcement (DGE). The company launched its proprietor 4NJBets a year later, but over the course of 2018, the service attracted only $12.4 million in sports betting handle.
US Sports Bettors Reluctant to Jump in on the Betting Exchange
What worked back in the United Kingdom had failed to appeal to US customers, Levin noted. He further added that “a customer base used to exotic wagers and reluctance by major US racing associations to embrace the different business model” have been contributing reasons behind the company’s poor results in the state.
Betfair’s withdrawal is just part of a broader move undertaken by Flutter Entertainment, the parent company, which recently bought out The Stars Group, has been restructuring business around the world.
Restructuring of Business for Flutter Entertainment
Earlier, the group announced that it is withdrawing PokerStars, TSG’s poker brand, from three markets, including China, Macau and Taiwan without citing any specific reasons. Betfair previously decided to withdraw from the Russian market in May, as it operated there without a license. The company also pulled out of the Japanese horseracing market in June.
In 2019, Betfair walked out on India amid a small scandal involving a local lobby group, which was supposed to push Betfair’s expansion in the country. With Betfair facing tougher competition in the market, Flutter Entertainment has been thinking ahead of events.
Meanwhile Sporttrade, a sports betting startup, has confirmed plans and inked an agreement with Twin River Worldwide Holdings online sports betting platform to introduce a proprietor betting exchange to the state.
Pending regulatory approval now, New Jersey is getting another esteemed sports betting exchange. It would need to try a different strategy if it intends to be more successful.