Betfred recently announced it is pulling out of two more U.S. online sports betting markets, Arizona and Virginia. This marks the latest departures for one of the UK’s most popular bookmakers.
Betfred Says Cheerio
At its zenith, Betfred was active in 10 online sports betting markets and had retail establishments in Nevada, Louisiana and Washington, DC. However, with the impending exits out of the Arizona and Virginia markets, that number has dwindled to two online operations in Iowa and Pennsylvania in partnership with the Wind Creek Bethlehem brand, while maintaining brick-and-mortar locations in all three aforementioned locations above.
The exit from Virginia will be complete on October 21st, while the Arizona operations will shut down completely on November 4th. “We are working closely with regulators to ensure this process is handled securely, correctly, and done in accordance with all state regulations and guidelines,” the company stated. “We strive to meet player and regulatory needs and expectations.”
Caught in the Duopoly
Betfred has had difficulty gaining traction in the United States since entering as a UK import, hoping to build its U.S. brand based on its popularity overseas. According to its website, “Betfred is one of the largest independent bookmakers in the UK, with 1,350 betting shops and an online business with over 800,000 active customers.”
However, the dynamic duopoly of FanDuel and DraftKings, which have control of roughly 73% of the online sports betting market, has all the other U.S. sportsbooks struggling for their scraps.
What’s Next for Betfred?
In August, Betfred’s USA CEO, Kresimir Spajic, spoke of his company’s impending exits from the U.S. markets and stated, “We are definitely trying, but there are no promises, and I think it will boil down to whether you can make yourself a sustainable business.”
After exiting in Maryland and Ohio earlier this year, Spajic said, “(we are) trying to basically reassess our position, renegotiate some of the old agreements, and see if we can find a sustainable and profitable path.”
When asked if any U.S. markets were sustainable for Betfred, Spajic said, “I truly believe that my team and I can create a sustainable business. The question is: Can you make a business profitable enough to make sense to continue operating in the U.S. versus putting this effort and investment elsewhere that might yield a bigger return?” Yet he also added, “By the end of the year, we are going to know where all these deals that we are trying to negotiate are going.”
Whether Betfred can continue to pour resources into markets yielding underwhelming results remains to be seen, but a complete exit from the U.S. market is not yet a foregone conclusion. The company has not given up on the U.S. market entirely and still holds out hope that it can reach more customers in those markets where it is still active.
Spajic noted, “But one very unique deal, even if it is in only one state, could make it happen because, remember, many states here have a sizable population and consequently large revenue potential.”
