The UK-based gambling operator Betfred had a busy July. Due to several failures in anti-money laundering and social responsibility, the operator ceased its sports betting services for Maryland residents.
Following closely were Ohio and Colorado, where Betfred will stop its mobile sports betting operations by the end of August. Recently, Betfred USA CEO Kresimir Spajcic hinted that the sports betting company might completely exit the US market in the future.
This means Betfred will cease its online operations in Arizona, Iowa, Pennsylvania, and Virginia, as well as its retail operations in Nevada, Louisiana, and Washington State.
In an interview with EGR North America, Betfred USA CEO Kresimir Spajcic expressed confidence in the company's ability to "create sustainable business," while emphasizing the importance of profitability.
Spajcic further added that while the company is interested in increasing its share in the country through new "groundbreaking projects" and agreements as well as revamping old partnerships, it is equally, if not more, important to ensure the business is "profitable enough to make sense to continue operating" in the US.
Therefore, the effort and investment put into the US market are being compared with other locations that "could yield greater returns," which is on the table.
The CEO continued, stating that by the end of this year, they should have a "better understanding" of their "path forward in the US," not ruling out a "complete departure" from the market in the medium to short term, provided they cannot achieve "sufficient value" within the US.
Spajcic listed the possibility of exiting more states by the end of this year.
Over the past six years, a significant number of US sports betting operators have succumbed to the firm grip of the DraftKings-FanDuel duopoly, which held a cumulative 73% handle share in April.
This includes operators like Tipico, Fubo Sportsbook, PointsBet US, WynnBET, FOX Bet, and MaximBET.
The parent company of Betway, Super Group, also revealed plans to exit the US sports betting market. Similarly, SuperBook's owner Westgate announced it would cease mobile betting services in any state outside Nevada.
With challenges brought by foreign companies like Betfred, unfamiliar with the demands and expectations of US bettors, the idea of further downsizing seems not too far off for operators.
