The UK-based betting operator Betfred had a busy July. After reporting a pre-tax loss of £71.7 million ($91.7 million) for the year ending October 1, 2023, which is a significant drop from the previous year's profit, and being fined for multiple anti-money laundering and social responsibility failures, the operator ceased offering sports betting services to residents of Maryland.
Next up are Ohio and Colorado, where Betfred will stop its mobile sports betting operations by the end of August. However, 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 stop its online operations in Arizona, Iowa, Pennsylvania, and Virginia, as well as its retail operations in Nevada, Louisiana, and Washington State.
Better understanding of the way forward by the end of 2024
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 intends to increase its share in the country through new "breakthrough projects" and agreements as well as restructuring old partnerships, it is equally, if not more, important to ensure the business is "profitable enough to continue operating in the US."
Therefore, we need to compare the efforts and investments made in the US market and other locations that "may yield greater returns."
The CEO continued, stating that by the end of this year, they should have a "better understanding" of their "development path in the US," but they do not rule out a "complete exit" from the market in the near or medium term if they fail to achieve "sufficient value" to create "value."
Spajcic listed the decision to exit more states by the end of this year as a possibility.
Difficult to break the duopoly
Over the past six years, a large number of US sports betting operators have succumbed to the strong duopoly of DraftKings-FanDuel, which as of April, collectively held a 73% market share.
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 owner Westgate announced it would cease mobile betting services in any state outside Nevada.
Additionally, challenges brought by foreign companies like Betfred, unfamiliar with the demands and expectations of American gamblers, make the idea of further scaling down seem not too far-fetched for operators.
