Super Group set to exit US sports betting market

New York-listed betting and gaming operator Super Group has begun a process to shut down its online sportsbook operations in nine US states.

Following the completion of an extensive internal review, the Betway-owner confirmed Wednesday that it will exit the nine US sports betting markets where it is currently live.

Super Group will maintain its iGaming presence in the US, however, and plans to operate two iGaming brands from its Spin portfolio, including Jackpot City, in both New Jersey and Pennsylvania.

“As a global business, we constantly evaluate the optimal use of our resources across all markets in which we operate,” said Super Group CEO Neal Menashe. “We have recently concluded an extensive review of our US operations and, at present, we do not see a long-term path to profitability for the sportsbook product.

“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 US footprint if the right investment or strategic opportunities arise.”

Super Group expects to incur costs and charges in connection with the closure of its US sportsbook operation.

The company said that while these costs would not be insignificant, they will not have any impact on Super Group’s previously communicated capital allocation or operating plans.

In its results for the first quarter of 2024, Super Group reported a 12 per cent increase in revenue to a record €379.3 million, with revenue from North America climbing 8 per cent to €140.9 million, of which €32.3 million was derived from Betway and €108.6 million from Spin.

Shares in Super Group Ltd (NYSE:SGHC) closed 1.29 per cent higher at $3.15 per share in New York Tuesday.