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Betway and Arizona's SaharaBets Sportsbook have decided to end their sports-betting operations in several states.
Super Group, the parent company of Betway, announced Wednesday (July 10) that it will soon cease its sports-betting operations in nine states to focus on its internet casino gaming operations in New Jersey and Pennsylvania.
Meanwhile, SaharaBets Sportsbook, which launched sports betting in Arizona in partnership with the National Hockey League’s Arizona Coyotes in January 2022, is also shuttering operations due to the Coyotes relocating to Salt Lake City, Utah.
The Coyotes were one of eight Arizona sports franchises that had gaming licenses in accordance with a 2021 state law. Alex Meruelo owns SaharaBets Sportsbook through the Meruelo Group along with the Grand Sierra Resort and Casino in Reno, and the Sahara Casino in Las Vegas.
SaharaBets Sportsbook announced its closure on X, formerly Twitter, on Tuesday, notifying its customers that “effective immediately, we are discontinuing the sports-betting offerings.”
Accounts will be available for customers for the next 30 days to allow for outstanding bets to be settled and for users to withdraw their account balances.
Betway Pivots To Internet Gaming
Super Group will begin the process of closing its U.S. sportsbook operations in nine states where it currently operates. Those states are New Jersey, Pennsylvania, Arizona, Colorado, Indiana, Iowa, Louisiana, Ohio and Virginia.
“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 in a statement. “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.”
Betway did not offer a timetable Wednesday as to when the company would fully exit the nine states. The company also let its Massachusetts sports-betting license lapse in February.
Jessica Franks, a spokeswoman with the Ohio Casino Control Commission (OCCC), told Vixio GamblingCompliance that regulators are aware of Super Group and Betway’s plans to cease their sportsbook operations in several jurisdictions, including Ohio.
“In these situations, the commission will work closely with the operator to make sure that plans are in place for areas such as informing customers about how to receive funds in their accounts back, taking down/settling wagers, how to address/resolve patron complaints, retaining information according to OCCC rules, and revenue reporting, Franks said Wednesday in an email.
Super Group’s Betway business in the U.S. reported a first-quarter adjusted EBITDA loss of $24.9m.
Menashe said a majority of Super Group’s revenue is generated in iGaming and, in line with that strategy, the company will continue to offer its online casino product in New Jersey and Pennsylvania.
“We are open to expanding our U.S. footprint if the right investment or strategic opportunities arise,” Menashe said.
The decision to shut down Betway will also affect the NHL, which announced a marketing partnership with the bookmaker in 2021. Despite the loss, the NHL still has deals with Caesars Sportsbook, which was named its official sports betting and gaming partner in March, along with deals with BetMGM, FanDuel and ESPN BET.
Betway also had partnerships with the NHL’s New York Islanders, Los Angeles Kings, New Jersey Devils and Philadelphia Flyers. It is unknown if the company will continue the marketing relationships with the Devils and Flyers as it will continue to offer iGaming in New Jersey and Pennsylvania.
Betway’s deals with National Basketball Association teams include the Brooklyn Nets, Chicago Bulls, Cleveland Cavaliers, Los Angeles Clippers, and Golden State Warriors.
Menashe was asked during a first-quarter earnings call in May about his expectations for the growth of iGaming and whether legalization behind the current seven states would accelerate over time. Currently, New Jersey, Connecticut, Delaware, Pennsylvania, Michigan, Rhode Island, and West Virginia offer iGaming.
“Obviously, casino regulation, sometimes these take much longer than sports,” Menashe said. “We are perfectly poised to be able to take on these opportunities, but we've got to take on the right opportunities and give us the right profitability and the right returns.”
Super Group expects to incur costs and charges with the closure of its U.S. sportsbook operation.
“Such costs and charges, while not insignificant, will not have any impact on Super Group’s previously communicated capital allocation or operating plans,” the company said.
Super Group expects to release further details at its next quarterly earnings call, scheduled for early August.
The exit of Betway from the U.S. sports-betting scene follows similar withdrawals announced in recent months by fellow international operators including Kindred and 888/evoke. Tipico is also exiting the U.S. market following an agreement to sell its technology and operations to MGM Resorts.
Arizona Loses Two Sportsbooks
Both Betway and SaharaBets Sportsbook operated in Arizona. Once their exits from the market are completed, 15 licensed sports-betting operators will be doing business in the state.
"Generally speaking, when any operator announces a cessation of operations in Arizona, the department works closely with the operator to ensure an appropriate wind-down of operations, at the end of which, the license would return to the department," Dayne O'Brien, a spokesman with the Arizona Department of Gaming (ADG), told Vixio in an email Wednesday.
O'Brien said the department has no further information to provide at this time.
The ADG began accepting applications for two new sports wagering licenses on Monday, with the application window set to close on July 19.
The ADG announced in June it would accept at least one event wagering license reserved for Arizona tribes, and at least one license reserved for a sports franchise in the state.
Sports betting in Arizona launched on September 9, 2021. Fanatics Sportsbook and bet365 entered the market earlier this year.
