Online gambling company owner Super Group planning to exit US online gaming market
Super Group, the parent company of Betway and Spin Casino, has announced its decision to exit the US iGaming market. This move comes in response to concerns about long-term profitability and recent regulatory changes in the market.
The company had already taken steps to withdraw from the US market earlier in 2024, closing its sportsbook in nine states due to poor profitability prospects. Despite this, Super Group reported revenues of $1.99 billion for 2024, marking an 18% increase from the previous year.
The US exit announcement has had a minor impact on Super Group's stock, with it dipping slightly from $11.38 to $11.02. The company expects to incur costs of between $30 million and $40 million as a result of this decision.
The growth in Super Group's revenues is attributed to improved sports outcomes, enhanced pricing strategies, and more efficient risk management. The company anticipates operational savings starting in 2026, which will further boost its profitability.
Super Group initially entered the US market in 2023 after acquiring Digital Gaming Corporation. The company went public in 2022 following a $4.75 billion merger with Sports Entertainment Acquisition Corp, listing on the NYSE.
The North American division, including Canada, made up 35% of Super Group's business in Q1 2025. However, the current regulatory challenges in the US iGaming market have led the company to reconsider its operations in the region.
The US iGaming landscape has become increasingly unstable, with factors such as slowing state-level legalization, new tax proposals, and growing competition from unlicensed sweepstakes and prediction markets challenging the outlook for legal operators.
Regulatory hurdles and fragmentation are a significant challenge in the US iGaming market. Operators must secure licenses in each jurisdiction and navigate evolving regulations, which can lead to complex compliance processes. Taxation and revenue concerns, AML/KYC compliance, responsible gaming regulations, and payment challenges further complicate the situation.
Despite the challenges, Super Group has raised its 2025 revenue forecast (excluding the US) to over $2 billion, up from $1.92 billion. More details about the final exit date will be shared in the Q2 2025 earnings report and at Investor Day in September. The move is part of a broader strategic review to simplify operations and improve shareholder returns.
Super Group is ending its operations in Pennsylvania and New Jersey. The company's listing on the NYSE has boosted its credibility with investors, regulators, and customers, but the decision to exit the US market indicates that the challenges in the iGaming market may outweigh the potential benefits.
[1] Maryland Online Gambling Bill Faces Resistance Over Tax Rates
[2] Payment Challenges Facing US iGaming Operators
[3] Regulatory Challenges in the US iGaming Market
[4] Responsible Gaming Regulations in the US iGaming Market
- With its decision to exit the US iGaming market, Super Group is confronting the complex compliance processes, including taxation and revenue concerns, AML/KYC compliance, responsible gaming regulations, and payment challenges, that are common regulatory hurdles in the industry (Regulatory Challenges in the US iGaming Market).
- As part of the broader strategic review, Super Group is focusing on simplifying operations and improving shareholder returns, which can be attributed to a shift in priorities towards finance and business, possibly in conjunction with technology, away from sports betting in the US iGaming market (Responsible Gaming Regulations in the US iGaming Market).
