As the new season approaches, the landscape for U.S. online sports betting operators is undergoing significant changes. Two well-known companies in the industry, SuperBook and Betfred, have announced significant cuts in their market share.
SuperBook, best known for its Nevada operations, announced the end of its sports betting services outside of the state. The decision affects its operations in eight states: Arizona, Colorado, Iowa, Maryland, New Jersey, Ohio, Tennessee and Virginia. SuperBook announced the news via a tweet at 8:38 pm ET on Friday, shortly after the company stopped accepting bets. Their website currently displays an image announcing the decision.
SuperBook said in a tweet: “We regret to inform you that SuperBook Sports will no longer accept bets or deposits from the following states: Arizona, Colorado, Iowa, Maryland, New Jersey, Ohio, Tennessee and Virginia. Thank you for being a loyal SuperBook Sports customer.” No specific reason was provided for the sudden withdrawal.
Data shows that it is difficult for SuperBook to establish a large market share in these regions. In New Jersey, the best performer among eight states, SuperBook's revenue share in June was just 0.3%. Market penetration in other states is even lower, with Arizona at 0.1% and Virginia at just 0.01% over the longer term.
The Telecommunications Act's restrictions on interstate sports betting may also be one of the challenges facing SuperBook. The federal law could hinder the company from promoting its popular NFL betting product, SuperContest, across state lines.
Betfred leaves Ohio
At the same time, Betfred also announced it was withdrawing from the Ohio sports betting market, its second exit after exiting Maryland in June. The company communicated the decision to Ohio customers via email. Like SuperBook, Betfred has struggled to gain a foothold in a competitive market, as evidenced by its minuscule share of online transactions and taxable revenue in Ohio — 0.08% and 0.003%, respectively, in May.
Despite these challenges, Betfred still operates in eight states including Arizona, Colorado, Iowa, Louisiana, Pennsylvania, Virginia and Washington, but only six of those states offer mobile betting.
The exits of SuperBook and Betfred are part of a broader trend in the U.S. sports betting industry this year. Other companies, including Betway, SaharaBet and SI Sportsbook, have also scaled back their operations or exited the U.S. market entirely. This trend reflects the intense competition and regulatory challenges that sports betting operators face in the crowded and diverse U.S. market.
These changes come as the industry seeks to capitalize on growing interest in sports betting, driven by the expansion of legal betting options and the popularity of major sports leagues. However, as the market evolves, only operators who can effectively attract and retain customers and adapt to the regulatory environment are likely to thrive.
