Super Group to keep US igaming presence despite sportsbook exit

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Super Group has announced that it will be undertaking an exit plan for its sportsbook product in the US, but the operator’s igaming presence in the market will be maintained.

Following the completion of an extensive internal review, the parent company of Betway and Spin has stated that, alongside relevant regulators and partners, it will shortly begin the process to fully close its US sportsbook operations in the nine states where it is currently live.

However, the operator’s igaming presence across the US will be maintained, with plans to operate two igaming brands from its Spin portfolio in both New Jersey and Pennsylvania.

Super Group disclosed that it was assessing its US options when the company published its fourth quarter 2023 results earlier this year in March.

Neal Menashe, CEO of Super Group, commented: “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.”

Super Group added that during its next quarterly earnings call scheduled for early August, the company’s management will provide information on the expected costs and charges in connection with its US sportsbook operation closure.

“Such costs and charges, while not insignificant, will not have any impact on Super Group’s previously communicated capital allocation or operating plans,” the group explained. 

“Non-US earnings, which have historically been reported separately, will not be negatively impacted by this closure.”

Within Super Group’s Q1 2024 financial statement in May, the operator reported group revenue of €379.3m (Q1 2023: €338.5m), up 12 per cent year-over-year. Excluding US operations, total revenue for the quarter was €374m, up 13 per cent YoY.

Adjusted EBITDA for Q1 improved by 29 per cent YoY to €46.5m (2023: €36.1m), but the group declared an adjusted EBITDA loss for its US operations of €22m (2023: €16.5m loss).