Super Group has announced that it will conduct an exit plan for its sportsbook product in the US.
The operator, which is the parent to brands including Spin and Betway, currently offers its sportsbook in nine US states, and intends to close these operations alongside the necessary regulators and company partners. However, this does not mean an exit from the US entirely, as Super Group intends to operate two iGaming brands in New Jersey and Pennsylvania via its Spin portfolio.
Looking at Super Group subsidiary Spin, the online casino makes the majority of its revenue from North American operations, as seen in the May / June edition of Gambling Insider magazine edition of Facing Facts. However, Spin also has a hold in Europe and Asia-Specific, which has grown steadily since 2021.
As part of its US exit, Super Group expects that it will incur costs and charges, which it intends to speak on further in its coming quarterly call. However, Super Group does not believe these charges will impact the business' operating plans, nor does it believe these charges will impact non-US earnings.
On the exit plan, Super Group CEO 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 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 is one of several businesses to recently leave the US market following an internal review. Late last month MGM Resorts International subsidiary LeoVegas acquired Tipico US’ sportsbook platform, while in March Evoke (formally 888) sold its US assets to Hard Rock Digital.
