Betfred Hints at US Exit and Additional Downsizing

UK-based gambling operator Betfred has had a busy July. After reporting a pre-tax loss of £71.7 million ($91.7 million) for the year ending October 1, 2023, which marked a significant drop from the previous year’s profit and being slapped with fines over several anti-money laundering and social responsibility failures, the operator stopped its sports betting offerings for Marylanders. 

Next in line are Ohio and Colorado, two states where Betfred will halt its mobile sports wagering operations at the end of August. However, more recently, Betfred USA chief executive officer Kresimir Spajcic hinted the sportsbook might exit the US market altogether in the future. 

This means Betfred would pull the plug on its online operations in Arizona, Iowa, Pennsylvania, and Virginia and retail operations in Nevada, Louisiana, and Washington State. 

Getting a Better Sense of the Path Forward by the End of 2024

During an interview with EGR North America, Betfred USA CEO Kresimir Spajcic expressed trust in the company’s ability to “create a sustainable business” while emphasizing the importance of making a profit.

Spajcic further added that while the company was interested in boosting its share in the country via new “groundbreaking projects” and agreements and old partnership revamping, it is equally, if not even more important to make sure the business is “profitable enough to make sense to continue operating” in the US. 

Consequently, a comparison between the effort and investment put in the US market versus a different location “that might yield a bigger return” was on the table. 

By the end of the year, the CEO went on, they should “have a better sense” of their “path forward in the US,” without excluding an “outright departure” from the market in the near to medium future provided they fail to obtain “enough value” to create within the American borders. 

Spajcic listed a decision to exit additional states before the end of the current year as a possibility. 

Hard to Beat the Duopoly

In the last six years, a large number of US sports betting operators have capitulated by way of acquisition or closure to the strength of the unflinching DraftKings-FanDuel duopoly which cumulatively held a 73% handle share in April. 

Among them, Tipico, Fubo Sportsbook, PointsBet US, WynnBET, FOX Bet, and MaximBET, to name just a few. 

Betway’s parent company, Super Group, also broke the news that it would exit the US sports betting market. Similarly, SuperBook owner Westgate announced it would stop offering mobile betting services in any state outside of Nevada.

Add the challenges presented by foreign companies such as the likes of Betfred that are not familiar with the requirements and expectations of American bettors and the further downsizing idea might not seem too far off for the operator.