British bookmaker Betfred’s U.S. footprint continues to shrink after announcing it was terminating its retail operations in Nevada.
Leaving Las Vegas
Kresimir Spajic, Betfred’s USA CEO, struck an optimistic tone when he was appointed to the company’s top job in September 2023. However, nearly a year later, his outlook had changed dramatically, and Spajic’s vision of Betfred’s existence in the US market was far more subdued.
After exiting several markets, Spajic was asked about his company’s future in the fiercely competitive U.S. retail and mobile sports betting industry. “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?” said Spajic.
The answer to that question appears to be a resounding no, as Betfred recently announced it would be leaving its only retail operation in Nevada, located at the Mohegan Sportsbook nestled within Virgin Hotels Las Vegas.
The company website notified Nevada customers of its departure:
Betfred Sportsbook has closed retail operations in the state of Nevada.
Should you have a winning wager or cash voucher that has not been redeemed, please visit the Mohegan Sportsbook at the Virgin Hotels Las Vegas or follow the Mail in Redemption instructions found on the back of the betslip. A check will be mailed within 30 days of receiving any mailed in winning ticket or cash voucher.
Any unsettled wagers placed at the Mohegan Sportsbook will be settled as the events occur. For all such winning wagers patrons should follow the above redemption instructions.
Market Consolidation
The company’s only remaining foothold in the United States is in Pennsylvania after once being present in 10 states. Betfred operates the Wind Creek Bethlehem Sportsbook and has a mobile sports betting app through the tribal casino.
Renegotiating deals with sports betting partners and evaluating its bottom line was the blueprint Spajic intended to follow, saying, “By the end of the year (2024), we are going to know where all these deals that we are trying to negotiate are going. But one very unique deal, even if it is in only one state, could make it happen because remember, many states here have sizable populations and consequently large revenue potential.”
Betfred is hardly alone in struggling to make it in the hyper-competitive U.S. mobile sports betting market. Wynn Resorts has shuttered all its digital sportsbooks except in Nevada, where it owns two premium Las Vegas Strip properties. Wynn Resorts’ chief financial officer, Julie Cameron-Doe, cited similar struggles as Betfred, saying, “In light of the continued requirement for outsized marketing spend through user acquisition and promotions in online sports betting, we believe there are higher and better uses of capital deployment for Wynn Resorts shareholders.”
Australian bookmaker PointsBet sold its U.S. assets to Fanatics for $225 million in 2023, which turbocharged the sports merchandiser’s access to domestic sports betting markets. More than 20 sports betting platforms have either shrunk their U.S. footprint or left altogether since 2020.
