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An internal review led to a determination that Betway does not 'see a long-term path to profitability' in the U.S.
The company, which also runs online casino Spin, said Wednesday that it will start the process of closing operations in the nine states in which its sportsbook is currently live.
Those states include:
- Arizona
- Colorado
- Indiana
- Iowa
- Louisiana
- New Jersey
- Ohio
- Pennsylvania
- Virginia
In New Jersey and Pennsylvania, the company operates Spin Casino as well.
"We have recently concluded an extensive review of our U.S. operations and, at present, we don't see a long-term path to profitability for the sportsbook product," Chief Executive Neal Menashe said.
“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 company lost $21.7 million and revenue dropped 13% year-over-year during the month of May.
Betway is not the only online gambling firm bidding farewell in the cut throat U.S. regulated market.
SaharaBets launched in 2022 through a license in partnership with the now defunct Coyotes NHL team in the state of Arizona. The sportsbook operation is owned by Alex Meruelo, who sold the Coyote’s assets to a group in Utah.
SaharaBets will keep accounts open for the next 30 days to allow for outstanding bets to settle and users to withdraw balances. Arizona was the only market for SaharaBets.
“The decision was not made lightly, and we understand the impact it may have on you as a customer,” an email to customers read. “We want to express our gratitude for your support throughout the years.”
Effective immediately, we are discontinuing the sports betting offerings at SaharaBets Sportsbook. Your wagering account will be accessible for the next thirty (30) days to allow time for your outstanding bets to settle and to withdraw your account balance. pic.twitter.com/hCAjNOblRf
— SaharaBets (@SaharaBets) July 9, 2024
It's not immediately clear how many people actually played here. A tweet made by the company Tuesday received zero responses as of late Wednesday.
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