Super Group to Exit the US Sports Betting Market

Super Group Limited, a leading betting and gaming company, announced its exit from the United States’ sports betting market. Despite that, the company will continue to operate its iGaming business in two states.

Super Group, which is the parent company of online betting and gaming operator Betway and iGaming specialist Spin, explained that this exit comes in the wake of a comprehensive internal revenue.

The discontinuation of the company’s sportsbook product means that it will now begin the process of fully closing its sports betting operations in the nine states where it currently operates. The move is expected to incur costs and charges and promised to provide more information to investors during the next quarterly earnings call in August.

Super Group is optimistic that the costs and charges, “while not insignificant,” will not have a negative impact on Super Group’s previously announced capital allocation and operating plans. The company doesn’t expect the US exit to impact its non-US earnings either.

As mentioned, Super Group will maintain its iGaming presence in the US. As a result, the two iGaming brands from its Spin portfolio will continue operating in New Jersey and Pennsylvania.

The Company’s Sportsbook Business Is Insufficiently Profitable

Neal Menashe, Super Group’s chief executive officer, commented on the matter, saying that, as a global business, the company is always seeking further growth. As a result, it is constantly evaluating the optimal use of its resources across all markets in which it has a presence.

Menashe concluded that the extensive review of the company’s operations in the United States determined that the sportsbook product doesn’t have a long-term path to profitability. Instead, the CEO said, most of the group’s revenue is generated by iGaming.

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. We are open to expanding our U.S. footprint if the right investment or strategic opportunities arise.

Neal Menashe, CEO, Super Group

In other news, Super Group entered into a definitive agreement to acquire complete control of sportsbook software technology licensed by its software partner, Apricot. The arrangement is expected to reinforce Super Group’s position in key markets where it operates.