Super Group, the parent company of popular brands like Spin and Betway, has revealed its decision to conduct an exit plan for its sportsbook product in the United States. This strategic move comes as part of Super Group’s broader evaluation of market profitability and resource allocation across its global operations.
Super Group Announces Exit Plan for Sportsbook Product in the US
Current Operations and Future Strategy
Super Group currently operates its sportsbook in nine US states but plans to cease these operations in coordination with regulatory bodies and business partners. However, this does not mark a complete withdrawal from the US market, as Super Group intends to maintain operations of two iGaming brands under its Spin portfolio in New Jersey and Pennsylvania.
Revenue Distribution and Market Focus
According to the May/June edition of Gambling Insider’s Facing Facts, Super Group’s subsidiary Spin primarily derives its revenue from North American operations. Despite this focus, Spin also holds a significant presence in Europe and Asia-Pacific, which has shown steady growth since 2021.
Financial Implications and Outlook
Super Group anticipates incurring costs and charges associated with the US exit, details of which will be discussed further in its upcoming quarterly call. However, the company asserts that these charges will not impact its overall operating plans or non-US earnings.
CEO Statement and Strategic Vision
Neal Menashe, CEO of Super Group, explained the rationale behind the decision: “As a global business, we constantly evaluate the optimal use of our resources across all markets in which we operate. We have recently concluded an extensive review of our US operations and at present, we do not see a long-term path to profitability for the sportsbook product. 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 US footprint if the right investment or strategic opportunities arise.”
Industry Trends and Market Dynamics
Super Group’s decision to exit the US sportsbook market aligns with recent trends where several businesses have re-evaluated their US strategies based on internal reviews and market dynamics.
Conclusion: The Exit Plan
Super Group’s exit plan for its sportsbook product in the US underscores its commitment to focusing on profitable segments and optimizing its global operations. By concentrating on iGaming offerings in key states, Super Group aims to strengthen its position in the evolving landscape of online gaming while remaining open to strategic growth opportunities in the US market.
FAQs About Super Group’s Exit Plan for US Sportsbook Product
1. What is Super Group’s recent strategic decision?
Super Group has decided to conduct an exit plan for its sportsbook product in the United States.
2. Why is Super Group exiting the US sportsbook market?
The exit is part of Super Group’s broader evaluation of market profitability and resource allocation across its global operations. The company does not see a long-term path to profitability for its sportsbook product in the US.
3. How many US states does Super Group currently operate its sportsbook in?
Super Group operates its sportsbook in nine US states.
4. Will Super Group completely withdraw from the US market?
No, Super Group will maintain operations of two iGaming brands under its Spin portfolio in New Jersey and Pennsylvania.
5. What is the focus of Super Group’s revenue distribution?
Super Group’s subsidiary Spin primarily derives its revenue from North American operations, with significant presence and steady growth in Europe and Asia-Pacific.
6. What are the financial implications of the US exit for Super Group?
Super Group anticipates incurring costs and charges associated with the US exit, which will be discussed further in its upcoming quarterly call. These charges will not impact the company’s overall operating plans or non-US earnings.
7. What did Neal Menashe, CEO of Super Group, say about the decision?
Neal Menashe explained that the company constantly evaluates resource allocation across all markets. After an extensive review, they do not see a long-term path to profitability for the sportsbook product in the US. The majority of their revenue is generated in iGaming, and they will continue to offer their leading casino product in New Jersey and Pennsylvania.
8. Is Super Group open to future opportunities in the US market?
Yes, Super Group is open to expanding its US footprint if the right investment or strategic opportunities arise.
9. How does Super Group’s decision align with industry trends?
Super Group’s decision aligns with recent trends where several businesses have re-evaluated their US strategies based on internal reviews and market dynamics.
10. What is Super Group’s focus after exiting the US sportsbook market?
Super Group aims to strengthen its position in the evolving landscape of online gaming by concentrating on iGaming offerings in key states while remaining open to strategic growth opportunities in the US market.
