Super Group (SGHC) Limited, the parent company of Betway, an online sports betting and gaming business, and Spin, a multi-brand online casino, has decided to exit the U.S. sportsbook market after an extensive internal review.
Super Group will work with regulators and partners to close its U.S. sportsbook operations in the nine states where it is active. However, it will maintain its iGaming presence in the U.S. by continuing to operate two iGaming brands from its Spin portfolio, including Jackpot City, in New Jersey and Pennsylvania.
The company expects to incur costs related to the closure of its U.S. sportsbook operations, with more details to be shared during the next quarterly earnings call in early August. These costs will not affect the company’s capital allocation or operating plans, nor will they impact Super Group’s non-U.S. earnings, which have historically been reported separately.
CEO Neal Menashe explained:
As a global business, we constantly evaluate the optimal use of our resources across all markets in which we operate. We have recently concluded an extensive review of our U.S. 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 U.S. footprint if the right investment or strategic opportunities arise.
