We are seeing more and more lower-tier mobile sportsbooks exit unprofitable markets as the industry continues to consolidate. SuperBook is the latest to announce it is shuttering its operations in eight states, leaving its home base of Nevada as its only digital presence.
SuperBook Waves Goodbye
Friday night, SuperBook posted on X the following: “We regret to inform you that SuperBook Sports will no longer be accepting bets or deposits in the following states: AZ, CO, IA, MD, NJ, OH, TN & VA. Thank you for being a loyal customer of SuperBook Sports.”
Although the folks at SuperBook did not give a reason why they are leaving eight of the nine states in which it operates, the numbers tell us all we need to know. In six of those eight states, regulators report each online sportsbook’s market share which allows us some insight as to the struggles SuperBook was having to gain a foothold in those markets.
- Arizona: 0.1% of online handle, 0.1% of taxable revenue in April
- Iowa: 0.1% of online handle, negative revenue in June
- Maryland: 0.1% of online handle, 0.05% of taxable revenue in June
- New Jersey: 0.3% of revenue share in June
- Ohio: 0.1% of online handle, 0.03% of taxable revenue in May
- Virginia: 0.01% of handle share for January 2023 through November 2023
As we can see, New Jersey is where SuperBook had its greatest success of the six markets and even that was only a 0.3% share of the fiercely competitive Garden State mobile sports betting market. Therefore, it is no surprise that the sportsbook with the most popular NFL handicapping contest in the nation, the SuperContest held at its home at the Westgate Las Vegas, is where it will continue to conduct retail and mobile sports betting operations.
More Bid Adieu
SuperBook may be the latest casualty of the online sports betting wars, but there are now approximately a dozen sportsbooks that have done the same. The mobile sports betting market in the United States is ruled by two books, FanDuel and DraftKings, while the others fight for the scraps.
Betfred recently announced its departure from Ohio despite its alliance with the popular Cincinnati Bengals. The notice stipulates it will cease operations on August 31, 2024, at noon ET. This announcement comes hot off the heels of their exit from Maryland last month.
Betway is another recent example of a sportsbook pulling up stakes as its parent company, Super Group, announced it was terminating operations in Arizona, Colorado, Indiana, Iowa, New Jersey, Ohio, Pennsylvania and Virginia.
Super Group SGHC Ltd Chief Executive Officer Neal Menashe stated: “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 U.S. 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 U.S. footprint if the right investment or strategic opportunities arise.”
Betway will continue its online gaming operations in New Jersey, and Pennsylvania through its iGaming division, Spin.
