With a bad projection for the future, Betway and its parent company Super Group have decided to halt all sports betting business in Virginia and the rest of the United States.
This news is far from unexpected. As the national sports betting market has reached the saturation point, many smaller operations like Betway are deciding to allocate resources elsewhere.
While Betway will cease all business in the United States, Super Group has not ended all operations in the country. Its online casino company, known as Spin, is still in operation and could even join a future Virginia online casino market if iGaming becomes legal.
Super Group, Betway’s parent company, has incurred massive losses
Super Group, Betway’s European parent company, recently underwent a long internal review of its place in the US sports betting market. During this process, it decided to eat the losses and abandon ship.
The company faced a lack of market share in Virginia and the rest of the country and a massive decline in overall profits.
Virginia does not report sports betting financial figures by operator, but Ohio provides a good example with a similar monthly sports betting handle. In Ohio, Betway took a minuscule $450,000 in total handle in May which came in far under 1% of the statewide sports betting handle that month. With so little traction, Super Group has decided to accept the costs it will take to close down Betway.
Additionally, Super Group reported a company-wide profit loss of $61 million in fiscal year 2023. Super Group compounded that rough year with $24 million of profit losses in the first quarter of 2024.
Because of those trends, the Super Group internal review found that any path toward profitability was unlikely at best.
Betway exits the following other US sports betting markets
Betway will closie down shop in the following states:
– Arizona.
– Colorado.
– Indiana.
– Iowa.
– Louisiana.
– New Jersey.
– Ohio
– Pennsylvania.
It appears Super Group knew it was about time to shutter Betway. Betway originally applied for a sports betting license in Illinois but withdrew its application. Betway also decided not to launch in Massachusetts.
While losing an operator can seem like a bad indication for the overall sports betting market, this has more to do with the Virginia sports betting industry maturing and stabilizing.
Betway leaving Virginia indicates a maturing market, not a struggling market
Sports betting became legal in the United States back in 2018. After the initial boom in betting operators, state markets have seen the steady attrition of smaller sportsbooks.
While it may appear a bad sign for consumer choice, the strongest operators took control of most of the market share.
This is a natural process and not an indication of a struggling Virginia sports betting market. Actually, sports betting revenue in May increased 20% year over year. Total handle exceeded $500 million for the ninth straight month, indicating that the market is growing and thriving.
That is why Super Group has not ruled out the possibility of returning to Virginia as an online casino operator if the industry becomes legal.
Super Group could return to Virginia if online casinos are legalized
Betway was first approved as a Virginia sports betting operator in November 2021, giving the company nearly three full years of experience working with the state. That experience could prove invaluable if Super Group attempts to return to the Commonwealth if a Virginia online casino industry becomes legal.
Super Group has not been shy while explaining that it is only ending its sports betting business in the United States. The company still operates the Spin online casino platform and has reported strong revenue from its efforts.
In the first quarter of 2024, Super Group generated $404 million in revenue. Of that total, a whopping 79% came from online casino operations.
Super Group Chief Executive Officer Neal Menashe issued a statement saying that Spin is performing well and will not be closing while announcing the sportsbook ending all operations.
“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.”
Betway was not blemish-free while operating in Virginia. It was fined $20,000 once for contacting residents on the self-exclusion list. It was an accident, but that past could come into play if Super Group attempts to rejoin the Virginia gaming market.
For Virginia Betway customers, Betway will stop taking bets on July 31, 2024. Bettors looking to find a suitable replacement sportsbook can check out our Virginia sports betting bonus page for the best operator deals in the state.
